Scandinavian Working Papers in Economics

Working Papers,
Örebro University, School of Business

No 2004:5: Voluntary road pricing

Lars Hultkrantz ()
Additional contact information
Lars Hultkrantz: Department of Business, Economics, Statistics and Informatics, Postal: Örebro University, Department of Business, Economics, Statistics and Informatics, SE - 701 82 ÖREBRO, Sweden

Abstract: In voluntary programs that encourage social responsible (“safe”, “green”, or whatever) driving, it is possible to implement pricing schemes that more closely reflect the variation of the social marginal cost of driving than can be made with regular (more uniform) taxes and charges. This paper discusses motives for such programs and presents three examples: pay-as-you-drive car insurance, “economic” intelligent speed adaptation, and urban city driving guidance

with automatic booking and payment of parking and/or road use charges.

Keywords: congestion; traffic safety; economic incentives; road tolls; pay-as-you-drive; intelligent speed adaptation; intelligent transport systems; telematics

JEL-codes: G22; H23; H54

23 pages, September 29, 2004

Price: 120

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