The use of price signals to influence car use is supported by economic theory and has the advantage of generating funds that may be used to solve transport and other problems. Pure economic theory suggests that, if travellers were charged the full costs they impose on society, their behaviour would change and overall costs would be reduced. Unfortunately, the transport market has a number of imperfections which result in inefficient behaviour. Foremost among the imperfections are the fact that important externalities of movement (congestion, emissions, accidents) are un-priced and that many of the real costs of motoring (maintenance, insurance, depreciation) are not fully perceived by drivers. Imposition of charges to cover the externalities can help to reduce inefficiencies but requires a number of hurdles to be overcome. We identify the need to ensure that pricing signals are clearly perceived and linked to car users’ behavioural decisions. We discuss the effectiveness, efficiency, and political acceptability of a number of pricing mechanisms including car ownership taxes, fuel tax, parking charges, tolls (inter-urban and urban), congestion charges or road user charges, and pay-as-you-drive insurance. Recommendations are made to apply these measures in a concerted and complementary way to influence car use.
Pricing Methods to Influence Car Use
Handbook of Sustainable Travel ; Kapitel : 7 ; 95-111
2013-08-01
17 pages
Aufsatz/Kapitel (Buch)
Elektronische Ressource
Englisch
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