SMF report says road user charging could serve climate change aims
Tue 27 February 2007
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The Social Market Foundation says in a new report that road user charging is technically and politically workable, can give appropriate priority to equity concerns and could make a significant contribution to reducing greenhouse gas emissions.
The SMF's 'Road User Charging: A Road Map' sets out the important decisions government will have to take if it chooses to implement road user charging. It highlights trade-offs between efficiency, public acceptability and equity and provides a road map for moving the debate on road pricing from the why to the how.
The report says that by scrapping Vehicle Excise Duty (VED) in favour of a charge that varies by fuel efficiency and/or emissions standards, road pricing could provide the same incentives, while also punishing people for driving their gas guzzlers more often. Alternatively, the Government could lower fuel duty on more efficient fuels, such as biofuels and diesel. Although this could lead to more traffic, it would help limit the growth in carbon emissions it says.
The report notes that much of the increase in road transport emissions in the past fourteen years has come from the freight sector. By incorporating environmental objectives into a road pricing system for the freight industry alone, it says – rather than for all motorists – it may be easier and have a more significant impact in the struggle to reduce carbon emissions.
The SMF report says, however, that until road pricing becomes a reality, alternative pricing measures - such as steeper gradations in VED and incentives to increase fuel efficiency - could help change the behaviour of the freight hauling industry to reduce carbon emissions and reduce the growth in traffic.
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