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Towards better transport pricing and taxation in Belgium

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Author Info

  • Stef Proost

    ()
    (K.U.Leuven-Center for Economic Studies; UCL - CORE)

  • Inge Mayeres

    ()
    (Federal Planning Bureau, Brussels)

Abstract

Starting from the fundamental principles of transport pricing the paper discusses the relative merits of a number of policy measures. It is argued that in the short to medium run the discouragement of the purchase of new diesel cars is the most important environmental measure that can be taken. A further increase in the fuel efficiency is no priority. In the same time frame parking charges and a cordon toll around major cities have an important role to play, while subsidies to public transport are justified only if a number of conditions are met. A toll on trucks is mainly an interesting way to make transit traffic pay taxes, but could be less useful to control the congestion levels. In the long run prices should be based on marginal social costs. Such pricing measures should be accompanied by a well-directed use of the revenues to correct for the effects on the poorest income groups.

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Bibliographic Info

Paper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment in its series Energy, Transport and Environment Working Papers Series with number ete0504.

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Length: 25 pages
Date of creation: Mar 2005
Date of revision:
Handle: RePEc:ete:etewps:ete0504

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Keywords: Transport Pricing; transport taxes; transport externalities;

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  1. Mayeres, Inge & Proost, Stef, 2001. "Should diesel cars in Europe be discouraged?," Regional Science and Urban Economics, Elsevier, vol. 31(4), pages 453-470, July.
  2. Edward Calthrop & Stef Proost, 2004. "Regulating on-street parking," Energy, Transport and Environment Working Papers Series ete0410, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment.
  3. Proost, S. & Van Dender, K. & Courcelle, C. & De Borger, B. & Peirson, J. & Sharp, D. & Vickerman, R. & Gibbons, E. & O'Mahony, M. & Heaney, Q. & Van den Bergh, J. & Verhoef, E., 2002. "How large is the gap between present and efficient transport prices in Europe?," Transport Policy, Elsevier, vol. 9(1), pages 41-57, January.
  4. Edward Calthrop & Bruno De Borger & Stef Proost, 2003. "Tax reform for dirty intermediate goods: theory and an application to the taxation of freight transport," Energy, Transport and Environment Working Papers Series ete0302, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment.
  5. Inge Mayeres, 2001. "Equity and transport policy reform," Energy, Transport and Environment Working Papers Series ete0114, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment.
  6. DE BORGER, Bruno, . "Discrete choice models and optimal two-part tariffs in the presence of externalities: Optimal taxation of cars," Working Papers 2000021, University of Antwerp, Faculty of Applied Economics.
  7. Parry, Ian W.H. & Bento, Antonio Miguel R., 1999. "Revenue recycling and the welfare effects of road pricing," Policy Research Working Paper Series 2253, The World Bank.
  8. Mayeres, Inge & Proost, Stef, 2001. "Marginal tax reform, externalities and income distribution," Journal of Public Economics, Elsevier, vol. 79(2), pages 343-363, February.
  9. Kurt Van Dender, 2003. "Transport Taxes with Multiple Trip Purposes," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(2), pages 295-310, 06.
  10. Proost, Stef & Van Dender, Kurt, 2004. "7. Marginal Social Cost Pricing For All Transport Modes And The Effects Of Modal Budget Constraints," Research in Transportation Economics, Elsevier, vol. 9(1), pages 159-177, January.
  11. De Borger Bruno & Mayeres Inge, 2004. "Taxation of car ownership, car use and public transport: insights derived from a discrete choice numerical optimisation model," Energy, Transport and Environment Working Papers Series ete0413, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment.
  12. Inge Mayeres & Stef Proost, 2002. "Reforming transport pricing: an economist's perspective on equity, efficiency and acceptability," Energy, Transport and Environment Working Papers Series ete0212, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Energy, Transport and Environment.
  13. Proost, Stef & Van Dender, Kurt, 2001. "The welfare impacts of alternative policies to address atmospheric pollution in urban road transport," Regional Science and Urban Economics, Elsevier, vol. 31(4), pages 383-411, July.
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