Do charges to freight trucks and trains in the European Union reflect their social marginal costs? Application to the case of Spain

Vassallo Magro, José Manuel and López Suárez, Elena and Pérez Martínez, Pedro (2012). Do charges to freight trucks and trains in the European Union reflect their social marginal costs? Application to the case of Spain. "Road & Transport Research", v. 21 (n. 1); pp. 12-22. ISSN 1037-5783.

Description

Title: Do charges to freight trucks and trains in the European Union reflect their social marginal costs? Application to the case of Spain
Author/s:
  • Vassallo Magro, José Manuel
  • López Suárez, Elena
  • Pérez Martínez, Pedro
Item Type: Article
Título de Revista/Publicación: Road & Transport Research
Date: March 2012
ISSN: 1037-5783
Volume: 21
Subjects:
Faculty: E.T.S.I. Caminos, Canales y Puertos (UPM)
Department: Ingeniería Civil: Transportes [hasta 2014]
Creative Commons Licenses: Recognition - No derivative works - Non commercial

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Abstract

In the last few years, the European Union (EU) has become greatly concerned about the environmental costs of road transport in Europe as a result of the constant growth in the market share of trucks and the steady decline in the market share of railroads. In order to reverse this trend, the EU is promoting the implementation of additional charges for heavy goods vehicles (HGV) on the trunk roads of the EU countries. However, the EU policy is being criticised because it does not address the implementation of charges to internalise the external costs produced by automobiles and other transport modes such as railroad. In this paper, we first describe the evolution of the HGV charging policy in the EU, and then assess its practical implementation across different European countries. Second, and of greater significance, by using the case study of Spain, we evaluate to what extent the current fees on trucks and trains reflect their social marginal costs, and consequently lead to an allocative-efficient outcome. We found that for the average case in Spain the truck industry meets more of the marginal social cost produced by it than does the freight railroad industry. The reason for this lies in the large sums of money paid by truck companies in fuel taxes, and the subsidies that continue to be granted by the government to the railroads.

More information

Item ID: 15520
DC Identifier: http://oa.upm.es/15520/
OAI Identifier: oai:oa.upm.es:15520
Official URL: http://www.informit.com.au/products/productdetails.aspx?id=1037-5783&container=IELENG
Deposited by: Memoria Investigacion
Deposited on: 13 Dec 2013 19:12
Last Modified: 21 Apr 2016 15:37
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