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Complementing distance based charges with discounted registration fees in the reform of road user charges: the impact for motorists and government revenue

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  • David Hensher
  • Corinne Mulley

Abstract

The call for a congestion charge is getting louder and more frequent in many countries as major metropolitan areas experience increasing levels of road congestion. This is often accompanied by a recognition that governments need to find new sources of revenue to maintain existing road networks and to invest in new transport infrastructure. Although reform of road pricing is almost certain to occur at some time in the future in a number of countries, a key challenge is in selling the idea to the community of road users as well as a whole raft of interest groups that influence the views of society and politicians. Simply announcing a need for a congestion charge (often misleadingly called a tax) does little to progress the reform agenda. What is required is a carefully structured demonstration of what might be done to progressively introduce adjustments in road user charges that are seen as reducing the costs to motorists while ensuring no loss of revenue to government. In this paper we show, in the context of Sydney (Australia), that this can be achieved by the reform of registration fees in the presence of a distance-based charging regime that can deliver financial gains to motorists, with prospects of revenue growth to the State Treasury. Copyright Springer Science+Business Media New York 2014

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  • David Hensher & Corinne Mulley, 2014. "Complementing distance based charges with discounted registration fees in the reform of road user charges: the impact for motorists and government revenue," Transportation, Springer, vol. 41(4), pages 697-715, July.
    • Handle: RePEc:kap:transp:v:41:y:2014:i:4:p:697-715
    DOI: 10.1007/s11116-013-9473-6
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    References listed on IDEAS

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    1. Hensher, David A. & Bliemer, Michiel C.J., 2014. "What type of road pricing scheme might appeal to politicians? Viewpoints on the challenge in gaining the citizen and public servant vote by staging reform," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 227-237.
    2. Wong, Yale Z. & Hensher, David A. & Mulley, Corinne, 2020. "Mobility as a service (MaaS): Charting a future context," Transportation Research Part A: Policy and Practice, Elsevier, vol. 131(C), pages 5-19.
    3. Hensher, David A. & Wei, Edward & Liu, Wen, 2021. "Battery electric vehicles in cities: Measurement of some impacts on traffic and government revenue recovery," Journal of Transport Geography, Elsevier, vol. 94(C).
    4. Wilson, Anna & Mason, Ben, 2020. "The coming disruption – The rise of mobility as a service and the implications for government," Research in Transportation Economics, Elsevier, vol. 83(C).
    5. David Hensher, 2013. "Exploring the relationship between perceived acceptability and referendum voting support for alternative road pricing schemes," Transportation, Springer, vol. 40(5), pages 935-959, September.
    6. Quiggin, John & Wang, Jiayu, 2019. "Unscrambling the toll road egg," Economic Analysis and Policy, Elsevier, vol. 61(C), pages 29-38.
    7. Hensher, David A., 2018. "Tackling road congestion – What might it look like in the future under a collaborative and connected mobility model?," Transport Policy, Elsevier, vol. 66(C), pages 1-8.
    8. David A. Hensher & Edward Wei & Wen Liu & Loan Ho & Chinh Ho, 2023. "Development of a practical aggregate spatial road freight modal demand model system for truck and commodity movements with an application of a distance-based charging regime," Transportation, Springer, vol. 50(3), pages 1031-1071, June.

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