Reforming transport pricing: an economist's perspective on equity, efficiency and acceptability

Inge Mayeres () and Stef Proost

Energy, Transport and Environment Working Papers Series from KU Leuven, Department of Economics - Research Group Energy, Transport and Environment

Abstract: This paper applies the traditional definition of equity and efficiency in economics to transport pricing. It is shown how this framework can also be used to define acceptability. The problems and potential of this approach are illustrated by examining the effects for Belgium of replacing current transport pricing by marginal social cost pricing. The welfare effects on different income groups of this pricing reform are shown for different income groups using a computable general equilibrium model. We demonstrate how the efficiency, equity and acceptability of the reform depend not only on the change in transport prices but also on the way the extra tax revenues are used. We compare the effects of the use of net tax revenues for higher social transfers and for lower labour taxes.

Keywords: transport economics; externalities; externality tax; equity; efficiency; political acceptability (search for similar items in EconPapers)
JEL-codes: D62 H2 H23 R41 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2002-09
New Economics Papers: this item is included in nep-cdm, nep-com and nep-pbe
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:ete:etewps:ete0212

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