Harmonizing heavy goods vehicle taxes in Europe: a British view

One of the biggest unresolved problems regarding the completion of the free internal transport market within the European community is the problem of harmonization of taxation on the road haulage industry. As the highest tax country, Britain might be expected to have to reduce its level of taxes as part of any harmonization.

This paper considers the current methodology of the British Department of Transport regarding the allocation of the track and external costs of road transport, in the light of developments in methodology and experience elsewhere in Western Europe and North America. We find a number of reasons for believing that, far from overstating the marginal social cost of use of roads by the road haulage industry, the current British approach actually understates it. Thus any move towards harmonizing tax levels may reduce taxes in Britain at a time when they should be increasing.     

The sensitivity of optimal transport strategies to specification of objectives

This paper describes a method for devising transport strategies that makes iterative use of transport models to find the optimal levels of pre-defined transport measures. It gives the results from using this method in nine European cities. At the heart of the procedure lies the definition of objective functions which encapsulate policy-makers' objectives with respect to economic efficiency and sustainability. These objective functions include a number of significant parameters and the paper examines the sensitivity of the results to changes in the values of these parameters. The parameters concerned are: the level of shadow price used with regard to public sector financial surplus and deficit; the trade-off between the perspectives of the present generation and a future generation (of importance to issues of sustainability); the trade-off between internal benefits/costs and external (environmental) benefits/costs; and the level of user benefits that can be “value captured” in the sense of raising additional finance for transport policies. Full sets of results are given for these sensitivity tests, and a number of practical transport policy conclusions are made.     

Traffic Noise in Europe: A Comparison of Calculation Methods,Noise Indices and Noise Standards for Road and Railroad Traffic in Europe

The demand for inland freight transport in Europe is mainly met by road transport, leading to unsustainable impacts such as air pollution, greenhouse gas emissions and congestion. Since rail transport has lower externalities than road transport, a modal shift from road to rail is an accepted policy goal for achieving a more sustainable and competitive transport system. However, intermodal road–rail transport is mainly competitive for long-distance transport, and as a consequence, the potential for modal shift is limited. The cost efficiency of road–rail intermodal transport is particularly sensitive to pre- and post-haulage (PPH) costs, since this activity typically has a larger cost compared with its share of the total distance in the transport chain. For intermodal transportation over shorter distances, for example, below 300 km and where there are substantial PPH activities at both ends of the chain, the competitiveness of the intermodal transport system compared with that of direct road is low. Improving the efficiency of PPH activities is, therefore, of utmost importance for the competitiveness of the intermodal transport system. This paper looks into the issue of improving the cost efficiency of an intermodal transport chain by implementing an innovative and flexible legal framework regarding the PPH activities in the chain. By extending the legal framework with exemptions for longer vehicles in PPH, the cost efficiency could be greatly improved. The purpose of such a framework is to allow and enable, for PPH exclusively, the use of 2?×?40 foot or even two semi-trailers using only one vehicle in the context of the Swedish regulatory framework. This paper develops a strategic calculation model for assessing and investigating the consequences of such a framework and investigates the framework's potential in terms of cost efficiency. The model in combination with a sensitivity analysis of input variables gives a comprehensive understanding of the effects of PPH under different circumstances. From the results, it is evident that there are substantial positive effects associated with a PPH framework of longer vehicles. Results indicate that a typical shipper may experience cost reductions of about 5–10% of the total costs of the intermodal transport chain. In summary, a more innovative and flexible legal framework regarding vehicle length in the PPH links can contribute to a greater modal shift, improved cost efficiency and more environmentally friendly transportation systems.     

Public responses to policies designed to internalise environmental and social externalities from road transport in New Zealand

Based on a public survey of registered voters, we explore four options for internalising the social and environmental costs of road transport. The options were presented together with generalised factual information about their benefits and costs. Respondents are highly supportive of fuel use efficiency standards and exhaust gas quality standards, with lesser support for proposed initiatives of road user charges and speed reduction. Demographic analysis of responses enables identification of those who might favour or oppose particular options. In this case women are identified as being strongly supportive of the speed reduction option.     

A practical method to estimate the benefits of improved road network reliability: an application to departing air passengers

This paper develops and applies a practical method to estimate the benefits of improved reliability of road networks. We present a general methodology to estimate the scheduling costs due to travel time variability for car travel. In contrast to existing practical methods, we explicitly consider the effect of travel time variability on departure time choices. We focus on situations when only mean delays are known, which is typically the case when standard transport models are used. We first show how travel time variability can be predicted from mean delays. We then estimate the scheduling costs of travellers, taking into account their optimal departure time choice given the estimated travel time variability. We illustrate the methodology for air passengers traveling by car to Amsterdam Schiphol Airport. We find that on average planned improvements in network reliability only lead to a small reduction in access costs per trip in absolute terms, mainly because most air passengers drive to the airport outside peak hours, when travel time variability tends to be low. However, in relative terms the reduction in access costs due to the improvements in network reliability is substantial. In our case we find that for every 1 Euro reduction in travel time costs, there is an additional cost reduction of 0.7 Euro due to lower travel time variability, and hence lower scheduling costs. Ignoring the benefits from improved reliability may therefore lead to a severe underestimation of the total benefits of infrastructure improvements.     

Transport emissions and travel behaviour: A critical review of recent European Union and UK policy initiatives

There are clear signs of a shift in the UK transport policy in response to concerns about the environmental impacts of road transport and anxieties about the implications of the projected future growth in demand.Much of the framework of UK transport policy is now determined at the overall European Union level. To date most European legislation and policy proposals have been concerned with reducing the specific externalities associated with the transport sector, with none of the measures involved likely to have more than a marginal impact on the growth in demand. The emerging research evidence suggests however that the private costs of car use in Europe may fall substantially short of its total social costs and there is an important emerging policy debate about how this gap might be closed.The UK has introduced a policy package designed to reduce the growth of car travel and its environmental impact, within which land-use planning measures feature prominently. The land-use policies, which to some extent represent a reassertion of many traditional UK planning policies, include: an emphasis on focussing new development in urban areas, increasing residential densities, strengthening the role of existing centres and improving provision for walking and cycling.A number of factors will constrain the effectiveness of the package in practice. There are also concerns about its impact on key environmental objectives, including air quality. There are important questions too about the welfare effects of increasing densities and about the wider impacts of the package on economic efficiency.     

Testing a Framework for the Efficiency Assessment of Road Safety Measures

Abstract

The objective of this research is to develop and test a framework for efficiency assessment of road safety measures and evaluate its use in decision‐making. An exhaustive review of standard methodologies and practices related to cost‐effectiveness and cost–benefit analyses is carried out for that purpose. Moreover, a number of case studies are performed, concerning the efficiency assessment of various road safety measures in different countries, covering different types of road safety measures (user‐, vehicle‐ or infrastructure‐oriented, policy or enforcement, etc.), ranging from national to local levels of implementation and including both ex ante and ex post evaluations. From the results conclusions are drawn on the efficiency of different road safety measures and the related determinants. Furthermore, the case studies reveal a number of methodology and data issues for which further research is required. The procedures and barriers involved in the use of efficiency assessment techniques at different levels of decision‐making are also highlighted by means of feedback received during and after the various case studies. On the basis of these results, a framework for the promotion, implementation and evaluation of efficiency assessment in road safety decision‐making is proposed. A particular set of recommendations is also presented regarding the treatment of barriers (fundamental, institutional or technical) within the efficiency assessment itself and the related decision‐making process.     

Influence of peak spreading and departure time choice on evaluation of its measures

Intelligent transport systems provide various means to improve capacity and travel time in road networks. Evaluation of the benefits of these improvements requires consideration of travellers' response to them. We consider a continuous‐time equilibrium model of departure time choice and identify a formula for the dynamic equilibrium departure rate profile. We develop the analysis to consider the effect on the cost incurred by travellers of ITS measures through their effects on each of the travel time in the absence of congestion, and the capacity for travel. This shows the importance in choice of departure time of travellers' values of time at each of the origin and destination of their journeys. We show the importance of these values of time in evaluation, and that if travellers value their time at both the origin and destination of their journeys, their responses will lead them to achieve a greater reduction in costs than would be achieved under free‐flow conditions.     

How much do people value the environment?

The selection and evaluation of road schemes through the Leitch framework is based on a combination of cost-benefit analysis and environmental impact assessment. Both techniques involve the definition and valuation of a number of costs and benefits. These costs and benefits are defined and valued in isolation to each other so that we know virtually nothing about the relative valuation that people assign to different types of costs and benefits which might affect them directly or indirectly. This paper outlines the development of a method which allows people to conceptualise the costs and benefits of a road scheme in their own terms and then to rank schemes in relation to those costs and benefits. This method is based upon an interview process involving the use of repertory grid technique. The information from the repertory grid technique is used as a sound basis for determining trade-offs between attributes and for attempting to obtain monetary valuations of different project attributes. A number of exploratory interviews are reported which outline some of the difficulties with a number of the survey features including the choice of case-study, interviewer and information biases and sample and non-response biases. Various ways of dealing with these difficulties are discussed.     

Role of transport in rural development in Africa

Rural Africa is starved of transport services. The transport routes run towards the export enclaves and the coast.

The political, social and developmental rural transport benefits are discussed. Rural transport will help (i) integrate the country and ease its governance; (ii) widen markets; (iii) induce increased agricultural output, through new technologies, reduced transport costs, etc. The transport cost savings should be passed on to rural firms and producers. The paper warns against their accruing only to middlemen — agricultural parastatals inclusive, thereby stifling the benefits to production. This could happen under some forms of pan‐territorial pricing. Negative aspects of road development, e.g. the substitution of local goods by imports, increased migration and noise, are noted.

The place and role of project appraisal in rural road planning is acknowledged. The broad‐based development packages approach associated with Integrated Rural Development Projects has, despite its attractions, some pitfalls. It favours well established villages and ignores distribution benefits within villages.

Project appraisal can be used to justify socially uneconomic transport developments. However, rural road investment projects with immediate negative returns are unlikely to be funded. Given clear priorities, short of elaborate cost/benefit analysis, obvious road investments choices can be made by the local community. Greater public accountability of transport planners and peoples’ participation in determining rural transport needs and priorities is emphasized. Increased rural road maintenance especially through self‐help schemes and increased use of traditional modes of transport, e.g. walking, animal and water transport, is recommended.     

Valuation of users’ benefits in transport systems

Transport projects involve costs and benefits. Benefits to users appear in the form of more and/or better trips. Once the neoclassical idea of demand is accepted, the variation of utility levels underlie the measurement of benefits. In the evaluation process, benefits have to be compared with costs, and this can be done converting utility into monetary units. This paper deals with the treatment of this problem, starting with the general relation among utility, demand and the various forms of consumers’ surplus, to move further into the particular forms that these relations take in the transport field. The rule‐of‐a‐half is followed from the intuitive initial justification to a strict (and general) analytical derivation. More rigorous forms of users’ surplus variation are then presented for fairly general cases, including both aggregate and disaggregate transport demand models, emphasizing the manner in which welfare measures are derived in each case. Discussion is centred around the comparative advantages and limitations of available approaches, searching for improvements in demand formulation and benefits measurement.     

Assessment of Cross‐Border Spillover Effects of National Transport Infrastructure Plans: An Accessibility Approach

Abstract

Traditional transport infrastructure assessment methodologies rarely include the full range of strategic benefits for the transportation system. One of these benefits is the contribution to cross‐border integration, critical for the European integration process. However, this is a key issue in strategic planning and decision‐making processes, as its inclusion may increase the probability of large‐scale transport infrastructure projects being funded. This paper presents a methodology for the measurement of the contribution of transport infrastructure plans to European integration. The methodology is based on the measurement of the improvement in network efficiency in cross‐border regions of neighbouring countries, via accessibility calculations in a Geographical Information System support. The methodology was tested by applying it to the ambitious road and rail network extensions included in the Spanish Strategic Transport and Infrastructure Plan (PEIT) 2005–2020. The results show significant and important network efficiency improvements of the PEIT outside the Spanish border. For the road mode, while the Spanish average accessibility improvement accounts for 2.6%, average improvements in cross‐border regions of France and Portugal are of 1.8%. And for the rail mode, the corresponding Spanish value is 34.5%, whereas in neighbouring regions it accounts for 20.2%. These results stress the significant importance of this strategic benefit and the consequent need for its inclusion in strategic planning processes. Finally, the paper identifies the potential of the methodology when applied at different administrative levels, such as the local or state levels.     

Real-time parking information management to reduce search time,vehicle displacement and emissions

The time spent searching for free parking spaces can produce considerable environmental pollution. Information on parking availability can be a powerful instrument for reducing these search costs. This paper develops a demand assignment model to evaluate the benefits of manipulating information with the objective of reducing the time and distances involved in finding a parking-place; including the walking distances involved. Using the full search procedure it was found that improvements of some 10% in efficiency could be achieved, but only at high computational costs. A genetic algorithm was programmed that increases the possibility of finding the optimum information conditions that can be translated into lower emissions of toxic greenhouse gases.     

Measuring the performance of intermodal freight terminals

As the interface point between road and rail, intermodal freight terminals (IFTs) are critical elements in the total freight distribution chain. This paper addresses the twin objectives of reducing freight transport costs and improving customer service by putting forward a number of indicators designed to measure the performance of IFTs. Each of the three major performance areas, namely customer service, operational efficiency and terminal productivity are discussed in detail.

A methodology is put forward which enables operating strategies to be evaluated. Computer simulation is used in order to arrive at strategies which reduce operating and capital costs and satisfy customer service requirements. The simulation model outputs include performance measures related to customer service such as mean waiting times required for loading and unloading of containers, as well as productivity measures of terminal operations such as lifting equipment utilisation.     

An assessment of the performance of the European long intermodal freight trains (LIFTS)

Intermodal rail/road freight transport has always been considered as a competitive alternative to its road freight counterpart in the European medium- to long-distance corridors (markets). Such consideration has been based on the increasing competitiveness of some innovative rail services and the existing and prospective performance of both modes in terms of the full social – internal or operational and external – costs. The most recent innovation of rail technologies and related services launched by some European railway companies, still at the conceptual level, is the Long Intermodal Freight Train (LIFT). This is supposed to be a block train operating in long-distance corridors (markets) with a substantial and regular freight demand.This paper develops analytical models for assessing the performance of the LIFTs, the already-operating Conventional Intermodal Freight Trains (CIFTs), and their road counterpart as well. The performance consists of the full – internal (private) and external – costs of the door-to-door delivery of loading units – containers, swap-bodies, and semi-trailers. The internal costs embrace the operational costs of the transport (rail and road) and intermodal terminal operators. The external costs include the costs of the impacts of door-to-door delivery of loading units on society and the environment. These negative externalities include noise, air pollution, traffic accidents, and congestion.The models are applied to a simplified version of intermodal and road transport system using inputs from the European freight transport sector. The aims are to compare the full costs of particular modalities in order to investigate the potential of the LIFTs as compared with the CIFTs in improving the internal efficiency of the rail freight sector and its competitiveness with respect to its road counterpart. In addition, the paper attempts to assess some effects on the potential modal shift of EU (European Union) transport policies on internalizing transport externalities.     

Should subsidies to urban passenger transport be increased? A spatial CGE analysis for a German metropolitan area

In many countries passenger transport is significantly subsidized in a variety of ways for various reasons. The objective of this paper is to examine efficiency, distributional, environmental (CO₂ emissions) and spatial effects of increasing different kinds of passenger transport subsidies discriminating between household types, travel purposes and travel modes. The effects are calculated by applying a numerical spatial general equilibrium approach calibrated to an average German metropolitan area. In extension to most studies focusing on only one kind of subsidy, we compare the effects of different transport subsidies within the same unified framework that allows to account for two features not yet considered simultaneously in studies on transport subsidies: endogenous labor supply and location decisions. Furthermore, congestion, travel mode choice, travel related CO₂ emissions and institutional details regarding the tax system in Germany are taken into account. The results suggest that optimal subsidy levels are either small or even zero. While subsidizing public transport is welfare enhancing, subsidies to urban road traffic reduce aggregate urban welfare. Concerning the latter it is shown that making investments in urban road infrastructure capacity or reducing gasoline taxes may even be harmful to residents using predominantly automobile. In contrast, pure commuting subsidies hardly affect aggregate urban welfare, but distributional effects are substantial. All policies cause suburbanization of city residents and (except for subsidizing public transport) contribute to urban sprawl by raising the spatial imbalance of residences and jobs but the effect is relatively small. In addition, the policies induce a very differentiated pattern regarding distributional effects, benefits of landowners and environmental effects.     

Substance precedes methodology: on cost–benefit analysis and equity

While distributive aspects have been a topic of discussion in relation to cost–benefit analysis (CBA), little systematic thought has been given in the CBA literature to the focus of such an equity analysis in evaluating transport projects. The goal of the paper is to provide an overview of the various directions an equity analysis, carried out within the context of a social cost–benefit analysis, could take. The paper starts from the widely-shared definition of distributive justice: the morally proper distribution of goods and bads over members of society. Following this definition, carrying out an equity analysis requires that decisions are made about: (1) the benefits and costs that are distributed through a transport project; (2) the members of society between whom benefits and costs are distributed; and (3) the distributive principle that determines whether a particular distribution is fair. Much of the discussions about cost–benefit analysis and equity do not address these questions in any systematic way. The paper aims to provide a framework. Three sets of benefits and costs are identified as a possible focus of an equity analysis: (1) net benefits; (2) mobility-enhancing benefits; and (3) individual benefits and costs. For each set, a discussion follows regarding the way in which members of societies could be divided into meaningful groups, as well as the possible yardstick for judging whether a certain distribution is fair. While the paper acknowledges that the choice between the three sets is ultimately a political decision, it ends with a set of arguments that suggest that the equity analysis of transport projects should focus first and foremost on the mobility-enhancing benefits generated by such projects.     

The longer and heavier vehicle debate: A review of empirical evidence from Germany

This paper aims to evaluate the likely effects of the adoption of Longer Heavier Vehicles (LHVs) from the perspective of logistics service providers (LSPs). The research consists of six case studies and a survey of companies which were involved LHV trials in Germany. Wider introduction of LHVs is being increasingly demanded so that road freight transport can better serve and support modern supply chains whilst achieving the desired eco-efficiency advancements. Available literature on LHVs puts a particular emphasis on five factors that need to be included in the assessment of their impact: energy efficiency, CO₂ emissions, costs, safety and infrastructure. The research provides an original and innovative empirical study refining and validating the current conceptual framework for assessing LHVs demonstrating it is a valuable tool and providing evidence that the vast majority of companies participating in our study, regardless of their size, were interested in the adoption of LHVs. However, it should be noted that a key limitation of the research is that by focusing on a single country case, the nature and scale of the findings may not reflect practice in other countries and sectors. There is also a need to examine the long-term sustainability of the improvements made.     

Distance and time based road pricing trial in Dublin

The objective of the work was to evaluate the potential user response to distance and time based road pricing of a sample of individuals drawn randomly from a group of volunteers in Dublin. The road use pricing charge levels were selected to match the marginal external costs of car transport i.e. those costs not currently paid by the car user. Such costs include marginal external costs of congestion, air pollution and noise. The project formed part of the EU DGXVII EUROPRICE project where one of the objectives was to evaluate the impact of road use pricing on private transport demand. Estimates of the marginal external costs of car travel had been previously made for Dublin in an EU DGVII project entitled TRENEN II STRAN and the results were used to select the road pricing charges in the trial. The distance travelled and travel time of a particular individual's work trip were noted. Charges per unit distance and time were applied so that the individual would incur a total charge for their average peak period work trip of 6.4 euro; the average marginal external cost of a peak period trip in Dublin, as estimated by the TRENEN model. Although the sample of individuals was relatively small, the indications from the results are worthy of note and further investigation on a larger sample. A significant reduction in the number of peak period trips was evident, of the order of 22%, resulting from trip suppression and transfer to other modes. This revised version was published online in June 2006 with corrections to the Cover Date.     

A new approach to evaluating on-road public transport priority projects: balancing the demand for limited road-space

Despite widespread growth in on-road public transport priority schemes, road management authorities have few tools to evaluate the impacts of these schemes on all road users. This paper describes a methodology developed in Melbourne, Australia to assist the road management authority, VicRoads, evaluate trade-offs in the use of its limited road-space for new bus and tram priority projects. The approach employs traffic micro-simulation modelling to assess road-space re-allocation impacts, travel behaviour modelling to assess changes in travel patterns and a social cost benefit framework to evaluate impacts. The evaluation considers a comprehensive range of impacts including the environmental benefits of improved public transport services. Impacts on public transport reliability improvements are also considered. Although improved bus and tram reliability is a major rationale for traffic priority its use in previous evaluations is rare. The paper critiques previous approaches, describes the proposed method and explores some of the results found in its application. A major finding is that despite a more comprehensive approach to measuring the benefits of bus and tram priority, road-space reallocation is difficult to economically justify in road networks where public transport usage is low and car usage high. Strategies involving the balanced deployment of bus and tram priority measures where the allocation of time and space to PT minimises negative traffic impacts is shown to improve the overall management of road-space. A discussion of the approach is also provided including suggestions for further methodology development.