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Danish Transport Regulation and Labour Market Effects

Author

Listed:
  • Hauch, Jens

    (Det Økonomiske Råds Sekretariat)

  • Pilegaard, Ninette

    (Danish Transport Research Institute)

  • Bjørner, Thomas Bue

    (AKF – Danish Institute of Governmental Research)

Abstract

We present a partial equilibrium model for road pricing in Denmark. The model analyses the joint problems of the taxation of the congestion externality and the effects on the labour supply. We combine two regulatory instruments, a toll ring and kilometre-based road pricing, with three ways of recycling the revenue (eased income taxes, increased subsidies for public transport and increased tax deductions for commuting). We find that the largest gain would arise from a combination of a toll ring and eased income taxes. Kilometre-based road pricing is less beneficial because the system costs are higher. Furthermore we find support for the hypothesis of weak double dividend but not strong double dividend. The model is inspired by Parry and Bento (2001) and Van Dender (2003) and extended in several ways, most important are the inclusion of several regions, more alternative modes of transportation, regionalised labour supply, modelling of a toll ring, peak/off-peak substitution and the inclusion of system costs.

Suggested Citation

  • Hauch, Jens & Pilegaard, Ninette & Bjørner, Thomas Bue, 2007. "Danish Transport Regulation and Labour Market Effects," Nationaløkonomisk tidsskrift, Nationaløkonomisk Forening, vol. 2007(1), pages 215-236.
    • Handle: RePEc:hhs:jdaecn:0132
    as

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    References listed on IDEAS

    as
    1. Lawrence H. Goulder, 1994. "Environmental Taxation and the "Double Dividend:" A Reader's Guide," NBER Working Papers 4896, National Bureau of Economic Research, Inc.
    2. Ian W. H. Parry & Antonio Bento, 2001. "Revenue Recycling and the Welfare Effects of Road Pricing," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(4), pages 645-671, December.
    3. Ian W. H. Parry & Kenneth A. Small, 2005. "Does Britain or the United States Have the Right Gasoline Tax?," American Economic Review, American Economic Association, vol. 95(4), pages 1276-1289, September.
    4. De Borger, Bruno & Wouters, Sandra, 1998. "Transport externalities and optimal pricing and supply decisions in urban transportation: a simulation analysis for Belgium," Regional Science and Urban Economics, Elsevier, vol. 28(2), pages 163-197, March.
    5. Glaister, Stephen & Lewis, Davis, 1978. "An integrated fares policy for transport in London," Journal of Public Economics, Elsevier, vol. 9(3), pages 341-355, June.
    6. Prud'homme, Rémy & Bocarejo, Juan Pablo, 2005. "The London congestion charge: a tentative economic appraisal," Transport Policy, Elsevier, vol. 12(3), pages 279-287, May.
    7. Lawrence H. Goulder, 1994. "Environmental Taxation and the "Double Dividend": A Reader's Guide," CESifo Working Paper Series 74, CESifo.
    8. Newbery, David M, 1990. "Pricing and Congestion: Economic Principles Relevant to Pricing Roads," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 6(2), pages 22-38, Summer.
    9. Proost, Stef & Van Dender, Kurt, 2001. "The welfare impacts of alternative policies to address atmospheric pollution in urban road transport," Regional Science and Urban Economics, Elsevier, vol. 31(4), pages 383-411, July.
    10. repec:ces:ifodic:v:3:y:2005:i:3:p:14567606 is not listed on IDEAS
    11. Kurt Van Dender, 2003. "Transport Taxes with Multiple Trip Purposes," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(2), pages 295-310, June.
    12. repec:bla:scandj:v:103:y:2001:i:4:p:645-71 is not listed on IDEAS
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    Keywords

    road; pricing;

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General

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