Show Less

Reforming Transport Pricing in the European Union

A Modelling Approach

Edited by Bruno De Borger and Stef Proost

This timely book deals with the problem of pricing passenger and freight transportation within Europe. The contributors argue that current legislation affecting pricing and regulation is increasingly less successful in dealing with market failures and externalities such as congestion, air pollution, noise and accidents. Technological progress and greater European co-operation has brought increased scope for the reform of transport policies.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 3: Policy reform packages

Bruno De Borger, John Peirson and Roger Vickerman


Bruno De Borger, John Peirson and Roger Vickerman 3.1 INTRODUCTION The previous chapter resulted in two specific lessons for transport policy design. First, it suggested that there does not exist a single policy instrument that internalises all externalities simultaneously. Individual price and non-price instruments may be quite successful in internalising individual externalities (for example, insurance premiums to tackle accident risks, fuel taxes to correct for CO2 emissions, direct emission regulation to reduce other air pollution), but a coherent transport policy necessitates a welldesigned policy package, consisting of an appropriate combination of instruments. Second, the discussion made it clear that from an efficiency viewpoint an increasing reliance on pricing instruments is necessary. Moreover, internalising the congestion externality is difficult with the existing price instruments, so that new pricing tools will have to be introduced that allow differentiation of charges in time and space in function of local and temporal variations in congestion. One of the main objectives of this book is to study the implications of various policy packages for transport demand and for overall welfare in a number of different European cities and countries, using a numerical optimisation model specifically designed for this purpose. In this chapter we present the policy packages that were selected for the empirical analysis reported on later in the book. The criteria for the selection of the policy packages were the following. First, they had to be consistent with a stronger emphasis on pricing instruments, as suggested by economic...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.