Optimal Pricing of Inter-urban Transport: Cross-Channel Case Study



Optimal Pricing of Inter-urban Transport: Cross-Channel Case Study

Authors

SANSOM T, BEAUMONT H, DUNKERLY C and NASH C, University of Leeds, UK

Description

The European Commission Green Paper 'Towards Fair and Efficient Pricing in Transport' (CEC, 1995) has sparked a vigorous debate about the most appropriate form of charging for the use of transport infrastructure and scheduled public transport services. Th

Abstract

The European Commission Green Paper 'Towards Fair and Efficient Pricing in Transport' (CEC, 1995) has sparked a vigorous debate about the most appropriate form of charging for the use of transport infrastructure and scheduled public transport services. The Pricing of European Transport Study (PETS) for the European Commission's Transport Directorate (DGVII) aims to take this debate forward by clarifying theoretical issues and providing empirical evidence for a series of inter-urban case studies which address questions such as:

* how do optimal charges compare to the current level and structure of prices?

* how would the volume and modal balance of transport demand change under optimal pricing?

The coordinator of the PETS study is the Institute for Transport Studies, University of Leeds. ITS also coordinates a Concerted Action on Pricing (CAPRI), designed to disseminate the results of all of DGVII's pricing research and to attempt to build concensus on its policy implications.

This paper presents the interim findings of the Cross-Channel Case Study, one of the five PETS case studies. The case studies build upon PETS deliverables which relate to the present day situation, deregulation and pricing issues, practical pricing problems, pricing principles and the internalisation of externalities.

The Cross Channel Case Study examines the pricing of the principal interurban transport networks between London and Paris, and between London and Brussels. Although the case study is concerned with interurban travel patterns, the current transport situation for the study area is one in which peaks in travel demand generally occur during weekday commuting periods.

The focus of the study is on international travel, and the prices and modal shares for freight and passenger transport in the year 2010. The main passenger modes in the study area are road, rail and air. For freight, road and rail transport are considered. For both passenger and freight travel by road, the alternatives of crossing the Channel by ferry or by Shuttle services through the tunnel are available. The externalities of interest are air pollution, global warming, noise, accidents and the time delays and increased vehicle operating costs associated with congestion.

This paper sets out the altemative pricing scenarios being examined by PETS (Section 2), and briefly discusses the analysis tools that are being developed in order to assess the impact on the modal shares of international transport (Section 3). Quantification and valuation of externalities is discussed (Section 4), and a summary of initial findings presented (Section 5), prior to conclusions being drawn (Section 6).

Since this paper is written at an interim stage of the PETS study, interested readers are invited to contact the authors in order to receive further information about the study.

Publisher

Association for European Transport