A Systems Approach to Modelling the Regional Economic Effects of Road Pricing

Bjarne Madsen, Chris Jensen-Butler, Jacob Kronbak and Steen Leleur
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Bjarne Madsen: The Centre for Regional and Tourism Research
Chris Jensen-Butler: University of St. Andrews
Jacob Kronbak: University of Southern Denmark
Steen Leleur: Technical University of Denmark

Chapter 12 in Road Pricing, the Economy and the Environment, 2008, pp 229-265 from Springer

Abstract: Abstract In Denmark, there has been a substantial debate in recent years concerning the consequences of introducing road pricing. This chapter examines some of the regional economic consequences of the full implementation of a GIS-based road pricing system for all roads in Denmark. A Danish model system (MERGE) consisting of an Interregional General Equilibrium model, LINE, a national transport model (LTM model) and an environmental sub-model (TIC-MAP) are presented. LINE is used to make an initial analysis of the primary regional economic effects. In the first step, price changes as a result of road pricing are calculated. In the second step, changes in regional competitiveness affecting demand are calculated. In the final step, revenue from road pricing is re-entered in order to ensure institutional balance and the effects on production, income and employment are calculated.

Keywords: Transport Cost; Disposable Income; Traffic Congestion; Private Consumption; Transport Sector (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:spr:adspcp:978-3-540-77150-0_12

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DOI: 10.1007/978-3-540-77150-0_12

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