Barry Ubbels

Auctioning concessions for private roads

Private toll roads are now seriously considered as an alternative to public (free-access) road infrastructure. Nevertheless, complete private provision without governmental control is only rarely considered. A main consideration against private roads would be that operators would be primarily interested in maximizing profits, which - given the market power they will have - will typically not lead to welfare-maximizing tolls and capacities. An important question is whether these discrepancies can be mitigated by a proper design of auctions for concessions of private roads. This paper therefore analyses capacity choice and toll setting by private investors in a competitive bidding framework organized by the government. We develop a two-link network simulation model with an untolled alternative to determine relative efficiency effects, and analyze rules for the government to organize the bidding process such that a more desired (welfare optimal) outcome is achieved. Our results show that, depending on the design of the auction, its outcomes may vary strongly, and may approach the maximum possible (second-best) welfare gains.

Tax Treatment of Employer Commuting Support: An International Review

Abstract Correctly pricing transport behaviour to take account of the ‘external’ costs such as congestion and emissions imposed on society by excessive car use has long been a tenet of effective transportation demand management. But while policy‐makers have striven to increase public transport subsidies, raise petrol taxes and introduce road‐user charging schemes to price the real costs of car travel properly, in most cases correcting the wider influences of the personal tax regime has begun only relatively recently. This paper is based on work undertaken for the Department of the Environment, Transport and the Regions, and the Inland Revenue of the UK government, which is currently working on addressing this very issue. In addition to reporting the British situation, the paper also uses a series of case studies to outline how this same process has been approached in the USA, Ireland, Germany, the Netherlands, Switzerland and Norway, and how successful they have been thus far with respect to transportation demand management objectives. It then draws conclusions about which direction policy‐makers should be aiming for in the future.

Environmental Effects of a Kilometre Charge in Road Transport: an Investigation for the Netherlands

Abstract This study discusses the potential environmental effects of a kilometre charge for car traffic in the Netherlands. This kilometre charge would replace the existing taxes on new cars and on car ownership. It would lead to a substantial increase in the variable costs of car use. It may lead to a doubling of these costs while at the same time the average costs of car use would not increase because the fixed taxes are strongly reduced. Four alternatives for the kilometre charge are formulated. These are estimated to lead to substantial reductions of energy and certain emissions.

Policy scenarios for achieving sustainable transportation in Europe

The relationship between globalization and transport volumes is complex because of many causes. Rising incomes, more leisure time, new technologies and the ageing of the population are just a few examples of trends that will influence the future development of the transport sector in terms of both passenger and freight transport. This means that the future of the transport sector is characterized by uncertainty. The aim of this paper is to map out the possible impacts of current globalization trends on the European transport sector in terms of transport flows and carbon dioxide emissions by means of a novel multilayer assessment model. By applying a scenario approach and designing four contrasting development paths seen from a European perspective, the alternative futures of the sector are assessed in terms of transport volumes and emissions. The empirical findings appear to result almost everywhere in a (strong) growth of transport and emissions. Hence, the intriguing research question is now whether the introduction of specific environmentally benign policies in Europe could change this development. Consequently, the paper confronts the foreseen EU objectives with current policies, as creating sustainable mobility is a key element in EU transport policy. Our findings indicate, however, that the achievement of sustainable mobility is rather problematic. Effective policy implementation and (as yet uncertain) new technology developments may offer new opportunities to achieve a more balanced development of the transport sector. However, in most cases, only a combination of strict environmental policies (including transport policy) and a fundamental change of lifestyles in the mobile society is likely to lead to a decrease in carbon dioxide emissions in the next 20 years.

Unconventional funding of urban public transport

Abstract In the past decade public authorities have developed a wealth of creative funding mechanisms to support transit systems. This paper offers a taxonomy of various unconventional funding mechanisms (i.e. outside the domain of charges for transit passengers or general taxation schemes), based on a review of financial arrangements for public transport. The paper identifies which classes of funding are particularly successful for the financing of transit systems. This cross-sectional analysis uses a type of artificial intelligence method, viz. rough set analysis. It appears that the nature of the funding scheme and the degree of public acceptability are mainly responsible for the success of unconventional funding mechanisms.

Behavioural responses to road pricing: Empirical results from a survey of Dutch car owners

For the evaluation and design of transport pricing strategies, it is important to have insight into the behavioral responses induced by transport pricing. Relevant dimensions of behavior include trip suppression, mode choice, and departure time choice. The results from a questionnaire among Dutch car owners are presented. The behavioral responses to two Dutch policy-relevant road pricing measures were analyzed. Depending on the type of measure, reductions of 6% to 15% were found in the number of car trips, which is in line with previous findings. A flat kilometer charge affects social trips considerably more than commuting trips. Respondents do appear to adjust commuting trips when a peak hour charge is implemented. Nonmotorized travel and trip suppression are the most popular alternatives for noncommuting trips. Departure time changes become attractive for all purposes when the proposed measure varies over time. Important explanatory variables for these effectiveness levels include the type of measure, income, and the possibility for commuters to work at home.

Transport Investment Appraisal and the Environment

This review considers the role of environmental effects in transport investment appraisal, mainly from the perspective of cost-benefit analysis, the most widely adopted appraisal technique. Although the basic principles of CBA are straightforward, several complications are identified that may play an important role in practical CBAs. These include second-best aspects, difficulties with discounting and with the spatial scope of CBAs, and the relation between CBA and the popular but multi-faceted and often ill-defined policy concept of sustainable development.

A Multi-Layer Scenario Analysis for Sustainable International Transport

This article considers the development of the international transport sector based on four globalization scenarios. These four images of the future transportation market are constructed at three different levels (global, European and Dutch). The possible consequences of these scenarios are mapped out not only by key aspects such as modal split and spatial organization but also by providing empirical insights into expected transport flows for both passenger and freight transport in 2020 based on data from 1995.

Car Users’ Acceptability of a Kilometre Charge

This chapter argues that individual car users will consider two types of effects when evaluating the acceptability of road pricing: effects on the problems resulting form car use (for example congestion) and effects of their own car use. The authors content that the latter will depend on the degree to which a car user can cope with expected cost increases, which will be related to factors like annual kilometers traveled, income and price level. The authors next examine how acceptability judgments are related to possibilities of evading transport-pricing policies, and the extent to which car users are compensated for negative consequences via revenue allocations.

The Economic Theory of Transport Pricing

This chapter gives an overview of the economics of transport pricing and provides some basic understanding of key issues important for prices in transport markets. The pricing policy adopted depends upon objectives. The objective of economic efficiency may be most important to society; prices must then be equal to marginal social costs. In most cases, however, actual transport prices deviate from marginal costs due to specific transport market conditions (e.g. externalities) and the presence of constraints (e.g. practical and legal). The regulator has then obviously to resort to “second-best” pricing: setting prices that are available optimally under the constraints applying.