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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.
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Chapter 11: Testing alternative transport pricing policies for Brussels

Kurt Van Dender


Kurt Van Dender 11.1 INTRODUCTION This chapter presents the case study on urban transport pricing and technology regulation policies for Brussels in 2005. Section 11.2 presents a general overview of the expected transport situation in Brussels in 2005, in case there are no policy innovations with respect to 1995. Section 11.3 gives a detailed description of this reference situation. We focus on the prevailing price structure, and on subsequent inefficiencies in transport markets. Next, Section 11.4 deals with the results of an optimal pricing and regulation policy. The main results of other counterfactual equilibria, more specifically cordon pricing and fuel taxes, are given in Section 11.5. Section 11.6 presents a conclusion. 11.2 11.2.1 BACKGROUND TO THE CASE STUDY1 Transport Markets and Traffic Flows The geographical area for this case study is the zone within the outer ringroad of Brussels. This area was chosen for two reasons: (a) an analysis of available data on transport flows shows that magnitude of flows and average speed clearly differ within and outside the ring; (b) the area within the ring is serviced by one urban public transport operator. The geographical scope also closely relates to the administrative boundaries of the Brussels Capital Region. Data on traffic flows are derived from the projection for 2005, from IRIS (1993). These flows are measured for a representative day. A day is the most relevant time scale for an analysis of urban transport problems. All prices, costs and taxes are for 2005, on...

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