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Optimal kilometre tax for electric vehicles
Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics. Linköping universitet.ORCID iD: 0000-0001-9235-0232
Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.ORCID iD: 0000-0002-4209-1997
KTH.
2023 (English)In: Transport Policy, ISSN 0967-070X, E-ISSN 1879-310X, Vol. 134, no April, p. 52-64Article in journal (Refereed) Published
Abstract [en]

We approximate the spatial and temporal distribution of the Pigouvian kilometre tax for road traffic in the most urbanized part of Sweden, with four million inhabitants and a similar “degree of urbanization” to the Netherlands and the UK, in a future scenario where most vehicles are electric. We apply the national transport model and include all links and four time-of-day periods. We find that roughly half of the vehicle kilometres travelled in Mälardalen has a marginal external cost (congestion and other external costs included) below 0.04 €/km which is below the fuel tax in 2019). The mean marginal external cost is higher, at 0.09 €/km. Our focus is not the exact numbers but the magnitudes and the vast variation across links in a country-like region: 90 percent of the revenue is collected on 10 percent of the road network. Hence, a nation-wide kilometre tax, implying high enforcement cost, is likely not the best option. Instead, the marginal external cost could probably be internalized fairly accurate by a congestion tax in the big cities in combination with for instance an ownership tax. We find that the Pigouvian tax would cover the public costs for our target road system. We relate our findings to the mainstem fiscal tax literature.

Place, publisher, year, edition, pages
Elsevier, 2023. Vol. 134, no April, p. 52-64
Keywords [en]
Benefit principle, Congestion charges, Electric cars, Equity, Fiscal taxes, Infrastructure investments, Kilometre tax, Milage tax
National Category
Economics
Identifiers
URN: urn:nbn:se:vti:diva-19568DOI: 10.1016/j.tranpol.2023.01.019ISI: 000944914600001Scopus ID: 2-s2.0-85148335262OAI: oai:DiVA.org:vti-19568DiVA, id: diva2:1740648
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Swedish Transport AdministrationAvailable from: 2023-03-01 Created: 2023-03-01 Last updated: 2023-05-23Bibliographically approved

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Börjesson, MariaAsplund, Disa

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