Regional and environmental impacts of expanding the heavy duty vehicle charge to the secondary road network in Austria |
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Authors: | Karl W Steininger Christoph Schmid Alexandra Tobin |
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Institution: | (1) Wegener Center for Climate and Global Change, University of Graz, Leechgasse 25, 8010 Graz, Austria;(2) Department of Economics, University of Graz, Universitaetsstr. 15, 8010 Graz, Austria |
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Abstract: | In road freight transport a particularly large share of the total social costs generated is not borne by road users. To correct
for this, many European countries use pricing instruments specifically targeted at heavy duty vehicles, so far targeted almost
exclusively at the primary road network. In line with the overall EU objective of greening the transport sector, we discuss
the possibility of expanding the road charging system to a more comprehensive, area-wide one. The degree to which peripheral
or disadvantaged regions are hit over-proportionally by such a measure remains an open question in the literature on heavy
duty vehicle road pricing. We combine an input–output and a computable general equilibrium approach to analyse the case for
Austria. We find that while it is not the sectors of highest economic importance in the periphery regions that are hit by
the charge, those sectors that are hit are those which are relatively more important in peripheral regions (with up to a twofold
share in value added) and for whom production price impacts tend to be relatively strong. The short term consumer price effect
of extending the current primary road network charges to the secondary network is found not to exceed 0.15%. In terms of the
principles of sustainable transport we find that extending charge coverage is compatible with most core principles, the exception
being the principle of regional need. In terms of environmental impact, for example, expanding heavy duty vehicle charges
to the secondary road network reduces heavy duty vehicle kilometres in the overall network (and related emissions) by roughly
2%. However, in order to comply with the needs principle, suitable complementary transfer policies need to be designed and
implemented for peripheral regions. |
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