Road pricing personal vehicles
17060
From 2018 to 2019
The Motivity consortium carried out a study commissioned by the Flemish administration on a feasible and desirable system of road charging in Flanders. TML analysed pricing, technology, enforcement, social policy, and monitoring to determine the extent to which a road pricing scheme could contribute to congestion reduction.
Belgium introduced a kilometre charge for trucks in April 2016. A kilometre charge for light vehicles does not exist in Flanders and would be a drastic measure. In summer 2018, the Flemish administration therefore commissioned an in-depth study.
This study was carried out by the Motivity consortium, consisting of KPMG, Transport & Mobility Leuven, Stibbe, and Common Ground. The consortium's assignment was to find out from different disciplines which system of road charging is feasible and desirable in Flanders. Transport & Mobility Leuven mainly conducted research on pricing, technology and enforcement, socially responsible policy, and monitoring.
Starting points
As a starting point, the then Flemish Government defined three equivalent objectives for a future system of road charging, being
The study therefore also examined to what extent a road charging system could contribute to a tax shift in Flanders.
Results
The results of this study count as policy preparatory work. They show which road charging system would be most suitable from the perspective of the three objectives (congestion, user pays, polluter pays): the smart, area-wide road charging.
Depending on priorities and outcomes, one objective may outweigh another. Those decisions also determine whether other variants of a road charge are appropriate.
If the first objective (reducing congestion) becomes the main priority, then zonal road pricing could be an alternative to smart, area-wide road pricing, for example. In a zonal mileage charge, drivers pay per kilometre, but within a more limited area.
Tax shift
The study also shows that introducing a road charge in Flanders creates a tax shift. The taxes on owning a car (current traffic taxes = tax on entry + annual road tax) shift to taxes on its use (the road tax).
The tax shift can also be fleshed out more broadly, by returning any revenue from a road tax to citizens through other means. For example, the revenue from a road charge could be used to reduce Flemish personal income tax or taxes on labour, or to make additional investments in infrastructure or public transport.
All reports are available under 'Downloads' on this webpage and on the site of the site of the Flemish government (Dutch only).
Further steps: social debate
This study is not a ready-made plan for a road charge, but the results can provide insights and facts for a nuanced political and social debate.
To take further steps, broader support and important policy choices are needed, such as on the objectives of a possible road charge and its prioritisation.
Moreover, there is a need for additional research and far-reaching coordination with other policy levels before a road charge can ever be introduced.
Need for other mobility measures
Smart road pricing can be an important part of a future-oriented mobility policy, but it is not a stand-alone measure.
Investing in other modes like public transport and bicycles and deploying new forms of mobility (scooters, car sharing, work buses, bike sharing ...) are necessary. The spatial organisation of Flanders and flexible or non-flexible forms of work also play a role.
Belgium introduced a kilometre charge for trucks in April 2016. A kilometre charge for light vehicles does not exist in Flanders and would be a drastic measure. In summer 2018, the Flemish administration therefore commissioned an in-depth study.
This study was carried out by the Motivity consortium, consisting of KPMG, Transport & Mobility Leuven, Stibbe, and Common Ground. The consortium's assignment was to find out from different disciplines which system of road charging is feasible and desirable in Flanders. Transport & Mobility Leuven mainly conducted research on pricing, technology and enforcement, socially responsible policy, and monitoring.
Starting points
As a starting point, the then Flemish Government defined three equivalent objectives for a future system of road charging, being
- reducing congestion,
- the 'user pays' principle, whereby taxes on car ownership shift to car use, and
- the 'polluter pays' principle, whereby the external costs of car use (congestion costs, noise pollution, environmental costs, etc.) are recovered from those who actually pollute.
The study therefore also examined to what extent a road charging system could contribute to a tax shift in Flanders.
Results
The results of this study count as policy preparatory work. They show which road charging system would be most suitable from the perspective of the three objectives (congestion, user pays, polluter pays): the smart, area-wide road charging.
- An area-wide kilometre charge is applied to the entire Flemish road network, with the user paying per kilometre (with possible zones with a lower or zero rate).
- The kilometre charge is smart. This means that rates can vary according to when, where, and how far motorists drive, thus reducing congestion.
Depending on priorities and outcomes, one objective may outweigh another. Those decisions also determine whether other variants of a road charge are appropriate.
If the first objective (reducing congestion) becomes the main priority, then zonal road pricing could be an alternative to smart, area-wide road pricing, for example. In a zonal mileage charge, drivers pay per kilometre, but within a more limited area.
Tax shift
The study also shows that introducing a road charge in Flanders creates a tax shift. The taxes on owning a car (current traffic taxes = tax on entry + annual road tax) shift to taxes on its use (the road tax).
The tax shift can also be fleshed out more broadly, by returning any revenue from a road tax to citizens through other means. For example, the revenue from a road charge could be used to reduce Flemish personal income tax or taxes on labour, or to make additional investments in infrastructure or public transport.
All reports are available under 'Downloads' on this webpage and on the site of the site of the Flemish government (Dutch only).
Further steps: social debate
This study is not a ready-made plan for a road charge, but the results can provide insights and facts for a nuanced political and social debate.
To take further steps, broader support and important policy choices are needed, such as on the objectives of a possible road charge and its prioritisation.
Moreover, there is a need for additional research and far-reaching coordination with other policy levels before a road charge can ever be introduced.
Need for other mobility measures
Smart road pricing can be an important part of a future-oriented mobility policy, but it is not a stand-alone measure.
Investing in other modes like public transport and bicycles and deploying new forms of mobility (scooters, car sharing, work buses, bike sharing ...) are necessary. The spatial organisation of Flanders and flexible or non-flexible forms of work also play a role.
