Policy Sections
Mini Sections
The Commission is currently striving to come up with a universal framework that could be used to make transport users pay for the negative effects they inflict on society, including air pollution, CO2, accidents and congestion. But a battle is again brewing between the road industry and other transport modes over the very nature and size of these costs.
Although road transport is essential to Europe's prosperity, competitiveness and social development, it produces a wide range of negative 'external effects', including:
It is thought that confronting motorists with these costs by imposing charges on infrastructure could ensure a more efficient usage of infrastructure and address some of these negative consequences. At the same time, charges would raise funds for investing in new infrastructure and alternative transport modes.
At the European level, the first directive on charging for the use of road transport infrastructure, widely known as the 'Eurovignette Directive', was adopted in 1993.
The text, which sets a framework enabling member states to introduce tolls and charges for heavy freight vehicles, was revised in 2006, extending its scope to all European roads, rather than just motorways, and requiring that any charges be applicable to all lorries over 3.5 tonnes, rather than just those over 12 tonnes, as of 2012.
The 2006 directive also introduced the possibility for governments to integrate the environmental and health-related 'external costs' of road transport into toll prices. However, because transport ministers were opposed to this inclusion, the final version of the Directive delays this possibility until an agreement is reached on a common methodology for the calculation and internalisation of external costs that can be applied to all modes of transport.
The Eurovignette Directive thus requires the Commission to present to the Council and Parliament, by 10 June 2008 (two years after the directive's entry into force), a general model for the assessment of all external costs related to transport along with an analysis of the expected economic, social and environmental impact of the internalisation of these costs for all transport modes.
In the light of this, the Commission has asked a consortium of experts, led by the consultancy CE Delft, to prepare a study looking into various calculation methods and internalisation scenarios. A stakeholder consultation will be held, based on this report, from October 2007.
The idea of establishing a uniform 'user-pays' system for all forms of transport is not new. However, it has usually been brushed under the carpet – as was the case during the Eurovignette debate – because of the complexity of calculating external costs.
The question of which costs should be considered as transport-related externalities – whether it should just be CO2 emissions or also things like the hospital costs of people involved in road accidents – is the main bone of contention, notably between green groups and 'softer' transport associations on the one hand and road industry representatives on the other.
Another point of argument is what should be done with the money raised from internalising these costs (currently, the Eurovignette leaves it up to member states to decide).
The International Union of Public Transport (UITP) stresses: "The current financial cost of use of different transport modes does not reflect the real cost to society. The poor contribution of private car usage to covering the external costs it produces creates a situation of unfair competition with the "softer" modes of urban transport (public transport, cycling and walking)."
The Union highlights the deficiencies of the current Eurovignette Directive, which deals only with commercial vehicles and long distance transport, despite the fact that the majority of transport-related external costs are concentrated in urban areas.
It therefore calls on the Commission to present a model that takes full account of urban mobility problems and "develops guidance for concrete measures for the internalisation of external costs resulting from car traffic and parking in urban areas".
"With regard to passenger transport, the models should target the private car. Public transport should be exempted from tax burdens and should benefit from the revenue of hypothecated taxation on indirect beneficiaries," it stresses.
However, the European Association of Automobile Manufacturers (ACEA), the European Road Federation (ERF), the International Tourism Alliance (AIT) and the International Automobile Federation (FIA), argue that "motoring already pays for itself". They say existing taxes, including fuel and vehicle taxes, already reach over €360 billion, thereby easily covering the costs inflicted by road users.
ERF Policy Director Tom Antonissen further adds that, while he fully agrees that the road transport sector should be made to pay for its emissions of CO2, "the debate needs to be fair and tax-neutral," implying that current taxes, which are not based on an estimation of external costs, such as registration and ownership taxes, should first be scrapped.
The road industry also insists that only CO2 should be considered as an external cost to society, because internalising the marginal costs of accidents and congestion "is neither feasible nor the most efficient instrument available to deal with these serious social issues".
According to a study prepared for ACEA: "The rationale of internalisation is to make economic agents aware of the costs they inflict upon society and induce them to modify their behaviour accordingly. The probabilistic nature of car accidents will prevent this from happening."
It explains that increasing the cost of auto usage would likely have no impact on road safety. "Will it make them drive more prudently, take a better care of their vehicles, be more sober, respect driving rules and prohibitions, and more generally 'avoid accidents'? Obviously not. If anything, the additional money they will spend on fuel will not be spent on improving their vehicles, and this will increase the accident rate."
Furthermore, while stressing that only CO2 should be considered as an external cost, ERF’s Antonissen says that the benefits generated by road users must also be integrated into the cost calculation: "If you talk about the costs of road transport to society, you should certainly offset them against the benefits, including job creation, trade, competitiveness, social cohesion and poverty alleviation."
Lastly, the industry insists that any income raised from road usage be invested back into optimising road transport. "We are against cross-subsidising, where all the income from the road sector is used to invest even more massively into the rail sector. We simply cannot allow that when there are still so many roads in Europe that need improving," Antonissen told EurActiv.
The European Federation for Transport and Environment (T&E) however rejects the argument that that transport is already heavily taxed: “This is far from the truth,” it stresses, saying that total taxes of €360 billion “only recoup about half of the total social costs” – which the group estimates at more than €680 billion, including costs for climate change, air pollution, accidents, noise, landscape and urban effects.
"Making road users pick up the bill for the environmental and social damage they cause would dramatically reduce these negative impacts and make the sector more efficient," T&E Policy Officer Nina Renshaw told EurActiv. She explained: "A study by the German Federal Office for Freight Transport, on the impact of Germany's distance-based toll for trucks, introduced in January 2005, is illuminating...There has already been a 13% decrease in 'empty truck kilometres'."
She urged the Commission to "waste no time in coming forward with a new Eurovignette proposal that enables the inclusion of external costs in road charges".