Brussels, 9 June 2004 Maurits van der Hoofd 1 Preliminary Results On Current Practice Maurits van der HoofdUrs Springer Miguel CarmonaStefan Suter Eduardo.

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Brussels, 9 June 2004 Maurits van der Hoofd 1 Preliminary Results On Current Practice Maurits van der HoofdUrs Springer Miguel CarmonaStefan Suter Eduardo PiresPaavo Moilanen

Brussels, 9 June 2004 Maurits van der Hoofd 2 Review of current practice and classification of pricing and revenue allocation schemes Objectives Dimensions and criteria for the description of pricing and revenue allocation schemes Pricing and revenue allocation schemes digest To what extent are current practices conistent with theory?

Brussels, 9 June 2004 Maurits van der Hoofd 3 Fact sheets: scope DoW: “This task will review and identify the ways in which revenues are collected and assigned across Europe” “to make a general survey of current practices of revenue use in the EU” Awaiting input from Work Package 2 Therefore: focus lies on pricing schemes for now The results are preliminary as the investigation is still continuing. Countries described are EU15 minus Luxembourg plus Switzerland.

Brussels, 9 June 2004 Maurits van der Hoofd 4 Modes considered Pricing schemes were investigated for the following modes: Road – especially motorways Rail – infrastructure charges Urban PT – bus, tram and metro Air – landing charges and other purely aeronautical charges Inland waterways Maritime – port dues

Brussels, 9 June 2004 Maurits van der Hoofd 5 Aspects considered Pricing schemes Earmarking of funds Revenue allocation schemes (to be developed): Design and allocation rules Forms of co-operation between the public and private sector Role of the institutions in the decision-making process

Brussels, 9 June 2004 Maurits van der Hoofd 6 General approach

Brussels, 9 June 2004 Maurits van der Hoofd 7 Pricing principles Pure social marginal cost pricing: Price = marginal resource cost + marginal external cost Marginal cost pricing Price = marginal resource cost Second best solutions such as multi-part tariffs, Ramsey pricing, SRMCP + mark-ups Target-oriented price schemes No differentiation between user type, time of day etc. (eg ACP)

Brussels, 9 June 2004 Maurits van der Hoofd 8 Pricing instruments Charge: A payment that is directly linked to a particular service from a public or private provider. Infrastructure access charges Road tolls Bridge/tunnel charges Tax: A levy that must be paid to the government without any clearly related service. Vehicle registration taxes Fuel taxes VAT

Brussels, 9 June 2004 Maurits van der Hoofd 9 Road mode: pricing schemes ? ? ? T T+C: 2 nd best T

Brussels, 9 June 2004 Maurits van der Hoofd 10 Rail mode: pricing schemes None ? ? ? C: 2 nd best None*

Brussels, 9 June 2004 Maurits van der Hoofd 11 Air mode: pricing schemes ? ? ? T+C: 2 nd best C: 2 nd best T+ C: 2 nd best C: 2 nd best T+C: 2 nd best C: 2 nd best ?

Brussels, 9 June 2004 Maurits van der Hoofd 12 Inland waterways mode: pricing schemes ? ? ? ? C: T- O ? ? ? None None C: 2 nd best ?

Brussels, 9 June 2004 Maurits van der Hoofd 13 Maritime mode: pricing schemes ? ? ? ? ? C: T- O C: 2 nd best C: T- O ? C: 2 nd best

Brussels, 9 June 2004 Maurits van der Hoofd 14 Earmarking of revenues? ? 58% of road to tunnels 2.5% of electricity tax to urban PT ? ? ?NoNo 100% of HGV to infra Part of fuel tax to regional infra 67% of HGV to rail infra, 33% to regional road infra Some air tax to noise abatement ? Some municipal tax from urban companies to urban PT Electricity tax to inland waterways No No ?

Brussels, 9 June 2004 Maurits van der Hoofd 15 Preliminary Observations SMCP not observed, but internalisation occurs more than before Roads and railways: where 2nd best solutions are more used No specific pricing schemes for urban PT except France Aviation charges (aeronautical) constrained by IATA, often multi- part tariff or another second-best scheme Very few examples of the application of taxes and charges in inland waterways Ports least regulated, often operate without govt. funding

Brussels, 9 June 2004 Maurits van der Hoofd 16 Pricing and revenue allocation schemes digest To be done after completion of the fact sheets To cover following aspects: –Pricing regimes (principles/instruments) –Earmarking of revenues from transport pricing schemes –Revenue allocation rules –Objectives and design of the revenue allocation schemes: Subsidies and cross-subsidisation Legal framework and institutional settlement Transport funds PPP Institutional solutions

Brussels, 9 June 2004 Maurits van der Hoofd 17 To what extent are current practices consistent with the theory? Pricing doctrines Revenue allocation schemes Preliminary assessment to be carried out after the conclusion of the fact sheets.