Road Wear and the Kilometre Charge: A Computable General Equilibrium Analysis
This paper investigates the effects of a re-introduction of a distance-related charge on heavy trucks in Sweden. The kilometre charge is set to cover the annual road maintenance costs and is calculated for 10 different truck and trailer configurations. Three scenarios are simulated in a CGE model of Sweden: (i) the charge alone is imposed; (ii) the charge is imposed while the sum of the annual Eurovignette charge and the annual vehicle tax is lowered to the minimum level set by the European Union; and (iii) as in the former but with twice the level of the kilometre charge. The results imply that the charge leads to significantly reduced road wear although it appears that most of the reduction stems from reduced trucking activity and not from substitution towards less damaging trucks. Extensive substitutions towards other modes take place and only between 56 and 78 per cent of the ex ante statically predicted amount of tax revenue could actually be expected to be collected once the charge is imposed. The effects seem to cancel out on aggregate. © 2005 LSE and the University of Bath
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:tpe:jtecpo:v:39:y:2005:i:1:p:53-74. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.