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Integrated Modelling of EU Transport Policy: Assessing Economic Growth Impacts from Social Marginal Cost Pricing and Infrastructure Investment

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Author Info

  • Jonathan Köhler
  • Ying Jin
  • Terry Barker

Abstract

This paper combines SCENES, an EU transport model with E3ME, an EU macroeconometric model. Social Marginal Cost Pricing (SMCP) and fuel tax increases were combined with a concentrated TEN-T programme. Large externalities mean an SMCP with very high revenues; if recycled through reductions in other, distortional taxes, GDP significantly increases. France, Italy, and Finland have the largest GDP increases; Denmark, France, and Sweden have the largest employment increases. These results are critically dependent on the revenue recycling, demonstrating the importance of a full macroeconomic analysis, including the fiscal policy implications, combined with a detailed analysis of the transport impacts. © 2008 LSE and the University of Bath

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Bibliographic Info

Article provided by London School of Economics and University of Bath in its journal Journal of Transport Economics and Policy.

Volume (Year): 42 (2008)
Issue (Month): 1 (January)
Pages: 1-21

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Handle: RePEc:tpe:jtecpo:v:42:y:2008:i:1:p:1-21

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Web page: http://www.bath.ac.uk/e-journals/jtep

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Cited by:
  1. Anger, Annela, 2010. "Including aviation in the European emissions trading scheme: Impacts on the industry, CO2 emissions and macroeconomic activity in the EU," Journal of Air Transport Management, Elsevier, vol. 16(2), pages 100-105.

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