The Use of Transferable Permits in the Transport Sector

This report focuses on the potential use of domestic transferable permit (TPs) systems in the transport sector, in order to address the issue of mobility needs management and especially the reductions of airborne pollution and greenhouse gas emissions. Firstly the context of the transport sector is briefly reviewed, the main arguments for or against the use of TPs in the sector are analysed and relevant areas are identified. Secondly four case studies of past, present or possible future permits systems are presented and evaluated. The main conclusions are: TPs applied to mobile sources are technically feasible at acceptable financial costs for protecting sensitive geographic areas. TPs schemes applied to automakers for unit vehicle emissions are also viable. Clarity, simplicity in target and pragmatism in scheme design help for their success. Regarding the broader GHG issue end-user TPs would currently involve significant administrative costs when compared with fuel tax system. Given the social resistance encountered by increase in fuel taxes in several countries, end-user TPs with free allocation may intrinsically have potential greater effectiveness and acceptance and should be thoroughly evaluated case-by-case as an alternative.Domestic transferable permits ; Emissions reduction ; Mobile sources ; Transport Sector

Uncertainties in Forecasting: The Role of Strategic Modeling to Control Them

The growing concern about environmental depredations from transport activity at short-range and long-range horizon calls for policies aiming at reorientation of travel demand trends. However every transport policy is subject to risks, environmental or financial ones, and has often long-range effects. This explains the renewed interest in tools which allow detection of these risks and their consequences. There is however a methodological challenge in the elaboration of these simulation tools because we have to take into account many different uncertainties.This paper analyzes the uncertainties associated with transport forecasts using a strategic model recently developed for Lyon's conurbation. Different sources of error and uncertainly are tested and compared by means of the model. It is argued that a strategy of systematic exploration of uncertainly is the preferred way to cope with it and to detect long-term risks associated with transport policy.Travel modelling ; Strategic planning ; Urban area ; Uncertainty ; Forecasting

Comments on "The London congestion charge: a tentative economic appraisal" (Prud'homme and Bocajero, 2005)

Comments on "The London congestion charge: a tentative economic appraisal" (R. Prud'homme, J.P. Bocajero. The London congestion charge: a tentative economic appraisal. Transport Policy [en ligne]. 2005, vol. 12, issue 3, pp. 279-287.)congestion charge ; economic assessment ; London (UK)

Tradable driving rights in urban areas: their potential for tackling congestion and traffic-related pollution

Congestion pricing as a transport demand management measure is difficult to implement because most of motorists expect a deterioration of their welfare. Tradable driving rights (TDR), that is allocating quotas of driving rights for free to urban inhabitants, could be a more acceptable alternative. This mechanism provides also a supplementary incentive to save whether trips or distance travelled by car, because of the possibility of selling unused rights. A complete system of TDR is designed in detail, aiming whether at reducing trips or vehicles-kilometres, in order to control congestion, or the same target modulated on the basis of the pollutant emission categories of vehicles in order to control atmospheric pollution. An assessment is carried out on the Lyon urban area, which points at some welfare distributive issues between motorists and the community, when compared with conventional congestion pricing.transport demand management (TMD) ; tradable driving rights (TDR) ; automobile traffic ; congestion pricing ; air pollution ; urban areas ; Lyon (France)

The Use of Transferable Permits in Transport Policy

This paper considers potential use of domestic transferable, or tradable, permit systems for the purposes of travel management, especially reducing environmental nuisances. The main arguments for and against the use of permits are analyzed. Secondly two case studies of existing permit systems are examined. The main conclusions are that tradable permits can address greenhouse gas and regional atmospheric pollutant emissions, and are suitable for congestion on a restricted time–space basis. Permits applied to mobile sources are technically feasible at acceptable financial cost for protecting sensitive geographical areas, and schemes applied to automakers for unitary vehicle emissions are also viable.Domestic transferable permits ; tradable permits ; transport ; environment ; nuisances ; case studies ; Mobile sources

A systems dynamics model for the urban travel system

This paper describes the development of a model architecture based on systems dynamics and econometrics. The purpose of the system of models is to simulate the medium­ and long­term effects of urban transport policies with reference to sustainable travel. Three models are presented successively with some results from simulation. The first model relates to the regulation of public transport finance and allows for the constraint of the scarcity of public funds. The second is a modal split model based on price­time modelling. The third is a combined assignment and time of departure choice model based on a queuing representation of congestion. Finally, the coupling between the last two models is described.system dynamics ; Econometrics model ; Urban travel system ; finance ; modal split ; assignment ; time of departure

Frontier impedance effects and the growth of international exchanges: an empirical analysis for France

On the European Union scale, international traffic is growing faster than intra-national traffic. This phenomenon is often viewed as a consequence of the abatement of the frontier effect. In this article the frontier effect is analyzed, on the basis of data available for road traffic between France and its neighbors and of freight transport data available at the EU level. The concept is discussed in the light of this empirical analysis. The shortcomings of the static approach lead to a critical revaluation by means of a longitudinal approach. In the conclusion some potential directions for future research are discussed.Frontier ; frontier effect ; international flow ; passengers transport ; goods transport ; Europe

A System of Tradable CO2 Permits Applied to Fuel Consumption by Motorists

Decentralized transferable permit systems in the transport sector can be of interest with regard to reducing greenhouse gas emissions, in spite of anticipated transaction costs. This paper describes a potential application of a domestic market for car fuel consumption permits. The marginal costs of consumption reduction vary sufficiently according to motorists' residential locations to consider permit exchanges. Economic evaluation of this system shows that there are transfers of surplus between the various groups of motorists according to their residential locations. The central government may lose significant revenues when compared with a conventional fuel tax. Lastly, the issue of transaction costs, the benefits and disadvantages in terms of social acceptability and equity are discussed. (JEL classification: D120; D450; R410; R480).Tradable permits ; Transport ; Greenhouse gas ; economic evaluation ; car fuel consumption ; carbon card ; motorists

Acceptability factors to transport policy changes

The authors have set out an analytical framework of the acceptability of pricing changes in the transport sector. This framework combines the dimensions of economic efficiency (to manage the demand efficiently), territorial equity (guarantee of accessibility), horizontal equity (user-pays principle), and vertical equity (welfare of most underprivileged). The application of this framework was validated on some urban or suburban road toll case studies. The analysis showed that these dimensions of efficiency and equity generally reinforce themselves in their negative or positive aspects. This analysis also showed that these various dimensions of equity cannot be ignored on pain of failure. Moreover the ways according to which the acceptability of urban road user charging could be improved, if not guaranteed, were identified.Transport ; policy ; road user ; road pricing ; equity ; acceptability ; economic efficiency

Perception of the fairness of pricing

Regulation by means of price in order to remove excess demand is generally perceived as being unfair. This paper empirically tests different principles of regulation including lotteries, rationing, a moral rule and compensation.We start from the postulate that the perception of the fairness of a urban road pricing policy is important for a successful implementation. This perception is analysed through the results of an attitudinal survey held in Lyons area in 2003 (N 400). We confirm that peak-period pricing as a means of limiting demand is overwhelmingly rejected. Administrative allocation and lotteries are also rejected. The reference transaction can also lead to rejection of waiting line. Price compensation is overwhelmingly considered to be fair and the right to this is demanded both from public or private sector monopoly: it is possible therefore to reinstate pricing in the form of compensation.Those surveyed express rather definite preferences for some principles of regulation (moral rule, compensation) to the detriment of pricing or even the administrative or traditional regulation (queuing). Ways of unfreezing the situation are identified, who could be exploited in order to form coalitions likely to support this kind of policy. Finally, certain dimensions of the equity are revealed through the analysis of the survey.Principles of justice ; fairness ; transport pricing ; perception ; Lyon