Table of Contents

Pricing in Road Transport

Pricing in Road Transport

A Multi-Disciplinary Perspective

Edited by Erik Verhoef, Michiel Bliemer, Linda Steg and Bert van Wee

Transport pricing is high on the political agenda throughout the world, but as the authors illustrate, governments seeking to implement this often face challenging questions and significant barriers. The associated policy and research questions cannot always be addressed adequately from a mono-disciplinary perspective. This book shows how a multi-disciplinary approach may lead to new types of analysis and insights, contributing to a better understanding of the intricacies of transport pricing and eventually to a potentially more effective and acceptable design of such policies. The study addresses important policy and research themes such as the possible motives for introducing road transport pricing and potential conflicts between these motives, behavioural responses to transport pricing for households and firms, the modelling of transport pricing, and the acceptability of pricing.

Chapter 5: Effects of a Kilometre Charge on Car Use, Car Ownership and Relocation

Barry Ubbels, Taede Tillema, Erik Verhoef and Bert van Wee

Subjects: economics and finance, transport, environment, transport, urban and regional studies, transport


5. Effects of a kilometre charge on car use, car ownership and relocation Barry Ubbels, Taede Tillema, Erik Verhoef and Bert van Wee 5.1 INTRODUCTION People’s responses to transport pricing may be multifold. Price increases need not exclusively lead to trip suppression, they may also induce travellers to change their modal use, change their departure time, or even decide to move or change job, depending on the type of measure. Pricing may thus affect many behavioural dimensions, most of which have been studied, both theoretically and empirically. Empirical studies often focus on conventional pricing measures, such as fuel taxes and parking pricing, and the practical experiences of road tolls. This is relevant in many situations, and provides useful insights into the potential effects road pricing may have. For instance, Goodwin (1992) reports that the price elasticity of gasoline demand is Ϫ0.27 in the short run and Ϫ0.71 in the long run. The case of Singapore has shown that time-dependent charges will affect time of driving (Olszewski and Xie, 2005). In addition, relocation effects may be expected (for example, Banister, 2002; Eliasson and Mattsson, 2002; and Vickerman, 2005). However, currently in several countries the attention is shifting toward charges on a kilometre basis, the UK and the Netherlands being examples. Research into the possible short- and long-term effects of a kilometre charge in its different possible forms is rather poor. In this chapter we try to reduce this gap by presenting the results of...

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