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The Foreign Trade and Sectoral Impact of Truck Road Pricing for Cross-Border Trade

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  • Karl Steininger

Abstract

Truck road pricing is on the brink of beingintroduced in a number of European countries.The experience gained from Switzerland, thefirst country worldwide to implement such adistant-dependent pricing scheme, has provedinvaluable. Nevertheless, significant questionsstill remain. The present paper attempts toprovide some clarity by analysing the welfareand sectoral impact resulting from theintroduction of truck road pricing with respectto foreign trade. It is shown that this impactcan be separated into four effects: the pureterms of trade effect, the tax revenue effect,the transit tax revenue effect and the resourcegain effect (resources set free by a reductionin transport activity). A CGE simulation ofeach of these effects identifies theirquantitative implications. Out of the foureffects the pure terms of trade effect turnsout to dominate at both the sectoral andaggregate level. It triggers a trade-inducedwelfare loss. The tax revenue effect, and lessso the transit revenue effect, mitigate thisloss. For a full road transport costinternalization a trade-induced welfare loss isquantified for Austria at 1.3%. Sensitivity ofthis and other aggregate variables is high withrespect to household reaction to transport taxrevenue refunding. The trade-induced welfareloss of variable size as explored in thisarticle counterbalances a fraction of thewelfare gain due to internalization. Copyright Kluwer Academic Publishers 2002

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  • Karl Steininger, 2002. "The Foreign Trade and Sectoral Impact of Truck Road Pricing for Cross-Border Trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(2), pages 213-253, October.
    • Handle: RePEc:kap:enreec:v:23:y:2002:i:2:p:213-253
    DOI: 10.1023/A:1021263213158
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    References listed on IDEAS

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    6. Ignatius J. Horstmann & James R. Markusen, 2021. "Endogenous market structures in international trade (natura facit saltum)," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 2, pages 25-45, World Scientific Publishing Co. Pte. Ltd..
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    Cited by:

    1. Karl W. STEININGER & Alexandra TOBIN & Christoph SCHMID, 2008. "Overall and Regional Economic Impacts of an Area-Wide Heavy Vehicle Duty: Comparing the Results of an Input-Output and a CGE Analysis," EcoMod2008 23800136, EcoMod.
    2. Pasquale Commendatore & Ingrid Kubin & Pascal Mossay & Iryna Sushko, 2017. "The role of centrality and market size in a four-region asymmetric new economic geography model," Journal of Evolutionary Economics, Springer, vol. 27(5), pages 1095-1131, November.
    3. Robson, Edward N. & Wijayaratna, Kasun P. & Dixit, Vinayak V., 2018. "A review of computable general equilibrium models for transport and their applications in appraisal," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 31-53.
    4. Birgit Friedl & Karl Steininger, 2002. "Environmentally Sustainable Transport: Definition and Long-Term Economic Impacts for Austria," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 29(2), pages 163-180, June.
    5. Karl Steininger & Christoph Schmid & Alexandra Tobin, 2012. "Regional and environmental impacts of expanding the heavy duty vehicle charge to the secondary road network in Austria," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(2), pages 261-278, May.
    6. Dieplinger, Maria & Fürst, Elmar, 2014. "The acceptability of road pricing: Evidence from two studies in Vienna and four other European cities," Transport Policy, Elsevier, vol. 36(C), pages 10-18.

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