Highlights ► Regulating the level of interoperability in road tolling is likely to be socially damaging. ► Vertical separation is likely to have positive effects. ► Vertical separation of the industry is likely to have a positive impact on the level of interoperability.

    Abstract As more European roads become tolled by various means, an increasing share of road users become subject to more than one tolling scheme in their regular driving. This can be especially burdensome for long distance hauliers, who may pass several countries and tolled motorway systems during the course of 1day. For this reason, a range of projects have been initiated attempting to increase the level of interoperability between tolling systems, many of which with only limited success. By analyzing current incentives, costs and benefits for toll operators and road users, we conclude firstly that the current level of interoperability is likely to be lower than socially optimal, and secondly that a direct regulation making the provision of interoperability mandatory is likely to be in excess of what is socially optimal. We argue that vertically separating the monopolistic toll operators could be a cost-efficient way to achieve a socially optimal level of interoperability as a equilibrium market outcome.


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    Title :

    Vertical separation as means to establish interoperability in road tolling in Europe


    Contributors:


    Publication date :

    2011-05-11


    Size :

    14 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English