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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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  • 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

Suggested Citation

  • Jonathan Köhler & Ying Jin & Terry Barker, 2008. "Integrated Modelling of EU Transport Policy: Assessing Economic Growth Impacts from Social Marginal Cost Pricing and Infrastructure Investment," Journal of Transport Economics and Policy, University of Bath, vol. 42(1), pages 1-21, January.
  • Handle: RePEc:tpe:jtecpo:v:42:y:2008:i:1:p:1-21
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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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