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Environmental HDV Road Charging for Berlin - Theoretical Considerations and Empirical Estimations

Author

Listed:
  • Martin Winter

    (Workgroup for Infrastructure Policy (WIP), Technische Universität Berlin)

  • Christian von Hirschhausen

    (Chair of Energy Economics and Public Sector Management, Technische Universität Dresden)

Abstract

Our paper estimates the effects of an environmentally-oriented, time-differentiated road charging system for heavy duty vehicles (HDV) in Berlin. We develop a network based simulation model, which explicitly takes into account the interdependence between HDV and passenger car traffic. The model covers the whole metropolitan area. Our estimations of traffic effects are based on our own estimates of trip demand elasticities, as well as on data taken from other recent studies. Three main effects of the HDV toll are estimated: The potential reductions of air pollution, noise and congestion. The welfare effects of diminished air pollution due to lower traffic levels are computed, taking into account Berlin specific fleet emission data. For the valuation of noise effects we apply the Impact- Pathway-Approach: changes of health risks due to changes in traffic levels are calculated and expressed in monetary terms, using an immission model, dose-response-functions, and monetary values from other studies. In addition, we estimate the welfare effects of reduced congestion due to fewer trips, a changed routing behaviour and subsequent higher average speeds. It is concluded that while there is a social surplus of a Berlin city charge for HDV (about 25 million €), it may be smaller than the installation and operation cost of such a system.

Suggested Citation

  • Martin Winter & Christian von Hirschhausen, 2006. "Environmental HDV Road Charging for Berlin - Theoretical Considerations and Empirical Estimations," Working Papers 2006-01, Center for Network Industries and Infrastructure (CNI).
    • Handle: RePEc:cni:wpaper:2006-01
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    File URL: http://www.cni.tu-berlin.de/fileadmin/documents/RePEc/cni/working_paper/winter_hirschhausen_2006-environmental_hdv_road_charging_for_berlin-cni_wp_no_2006-01.pdf
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    More about this item

    Keywords

    North-South; growth model; innovation assimilation;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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