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A Systems Approach to Modelling the Regional Economic Effects of Road Pricing

In: Road Pricing, the Economy and the Environment

Author

Listed:
  • Bjarne Madsen

    (The Centre for Regional and Tourism Research)

  • Chris Jensen-Butler

    (University of St. Andrews)

  • Jacob Kronbak

    (University of Southern Denmark)

  • Steen Leleur

    (Technical University of Denmark)

Abstract

In Denmark, there has been a substantial debate in recent years concerning the consequences of introducing road pricing. This chapter examines some of the regional economic consequences of the full implementation of a GIS-based road pricing system for all roads in Denmark. A Danish model system (MERGE) consisting of an Interregional General Equilibrium model, LINE, a national transport model (LTM model) and an environmental sub-model (TIC-MAP) are presented. LINE is used to make an initial analysis of the primary regional economic effects. In the first step, price changes as a result of road pricing are calculated. In the second step, changes in regional competitiveness affecting demand are calculated. In the final step, revenue from road pricing is re-entered in order to ensure institutional balance and the effects on production, income and employment are calculated.

Suggested Citation

  • Bjarne Madsen & Chris Jensen-Butler & Jacob Kronbak & Steen Leleur, 2008. "A Systems Approach to Modelling the Regional Economic Effects of Road Pricing," Advances in Spatial Science, in: Chris Jensen-Butler & Birgitte Sloth & Morten Marott Larsen & Bjarne Madsen & Otto Anker Nielsen (ed.), Road Pricing, the Economy and the Environment, chapter 12, pages 229-265, Springer.
    • Handle: RePEc:spr:adspcp:978-3-540-77150-0_12
    DOI: 10.1007/978-3-540-77150-0_12
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