Freight transport issues in the national road pricing policy
Faculty of Applied Economics
WCTRs-SIG2, 2012, University of Antwerp, 21-22th May
University of Antwerp
Road pricing becomes a major concern on the transport policy agenda. This is because road traffic shows an increasing trend and the expectations of demand for road transport remain very high for near future. On the other hand the issue of limited road capacity in many European countries is a reality. Therefore, the benefits to be gained from introducing road pricing grow significantly among developed and developing nations. This research suggests freight transport related considerations for road pricing policy. A Vector Aoutoregression model is applied to investigate the reaction between road transport costs and main economic indicators, according to the applied VAR model in this research, at macro level, road pricing would generate a revenue source for government in the future and cause road transport value added. However, the size of the net benefit is not considerable. Based on our extensive literature review regarding road pricing, at micro level, implementing it can reduce in-transit inventory and the cash-flow risks associated with it by reducing road transport time and increasing road transport reliability. Therefore, businesses would be able to reduce total inventory costs and provide more efficient, reliable and flexible logistics, production and marketing by productive distribution networks.