Revenue Use from Transport Pricing
Previous EU research projects have mainly focused on the optimal pricing of existing infrastructure. This is a necessary and important step forward for the optimal use of transport infrastructure. However, the introduction of marginal social cost pricing will give rise to important changes in revenues of infrastructure pricing. These can be positive (say in urban congested areas) or negative (say in low densely areas). These changes in revenues will probably necessitate probably also a reform of current practices and institutions of revenue use. We see that these current practices of revenue use in the transport sector are quite complex: we observe earmarking, public-private partnerships, investment funds that pool revenues over regions and over modes, price regulation, matched grants etc…
This research project has three ambitions: to know what are current institutions and practice of transport revenue use, to develop guidelines for a good revenue use in the presence of marginal social marginal cost pricing on the basis of sound economic theory, and finally to test the guidelines on a large set of case studies. The structure of the project is described below:
WP1 sets the stage for the overall project, notably through the assessment of the range of policy issues addressed, the critical review of evidence provided by previous research, and the establishment of a common terminology of concepts.
The economic principles of optimal revenue use are studied in WP2. The theoretical prescriptions to be developed will play a dual role: to help explain the failures of current practice, and to provide alternative (better) guidelines for revenue use. The case studies will cover different modes and countries. The main purpose of the case study work is to compare current practice of revenue use with the main theoretical guidelines.
WP3 defines a common methodology for the case studies. WP4 concentrates on revenue use in inter urban cases, while WP5 analyses urban case studies.
WP6 consolidates and summarises the findings of work packages 1-5. The policy conclusions will be used to prepare a guideline, which will be disseminated to all parties involved (policy makers, EU community, academic community, operators, pressure groups and lobbies).