Investment and the use of Tax and Toll Revenues in the Transport Sector

Transport infrastructure developments will depend increasingly on the level of user charges. One reason is the ongoing liberalization of the EU transport sector, especially for air and rail. Another is the trend towards implementing tolls and other user charges on roads. It is expected that user charges will progressively replace government subsidies for infrastructure expansion and maintenance. Revenues from user charges may also be used to cross subsidize other transport modes. The surplus anticipated on urban roads could be used to fund infrastructure and operation of public transport and/or non-urban roads.

This book brings together both the theory and the current practice of user charges, tolls and revenue use in European countries. It examines public finance aspects such as earmarking, as well as public management aspects of different pricing and revenue use principles. A set of guidelines is developed for a better use of toll and tax revenues. The set of guidelines is tested with a new cost benefit tool in case studies that cover France, Germany, Norway , Switzerland and the UK.

Research in Transportation Economics is now available online at ScienceDirect — full-text online of volumes 6 onwards.

Chapter 1: “Investment and the use of tax and toll revenues in the transport sector: The research agenda”

André de Palma, Robin Lindsey and Stef Proost


Part I: Theory

Chapter 2: “Transport user charges and cost recovery”

André de Palma and Robin Lindsey


Chapter 3: “Public finance aspects of transport charging and investments”

Stef Proost , Bruno De Borger and Pia Koskenoja


Chapter 4: “The contracting of investment and operation, and the management of infrastructure funding bodies”

David Meunier, Emile Quinet


Chapter 5: “Comparing alternative pricing and revenue use strategies with the MOLINO model”

André de Palma, Robin Lindsey, Stef Proost and Saskia Van der Loo


Part II: Real World Experiences


Chapter 6: “The role of the case studies and the main policy questions addressed”

Heike Link


Chapter 7: “Use of toll revenues and investment in Oslo”

Jon-Terje Bekken and Bard Nordheim


Chapter 8: “Cordon charges and the use of revenue: A case study of Edinburgh”

Jim Laird, Chris Nash and Simon Shepherd


Chapter 9: “The Swiss railway investment fund”

Laurent Cretegny, Urs Springer and Stefan Suter


Chapter 10: “The German HGV motorway toll”

Claus Doll and Heike Link


Chapter 11: “French multi-modal transport funds: issues of cross-financing and pricing”

Charles Raux, Aurélie Mercier and Stéphanie Souche


Chapter 12: “Synthesis of case study results and prospects”

André de Palma, Robin Lindsey and Stef Proost