Internalizing External Cost of Passenger Vehicles in Flanders

This article reports on a study of the external cost of passenger vehicles in Flanders. The authors monetized seventy vehicle segments and compared them to the vehicle taxation in Flanders (separating steering and non-steering measures), to determine the internalization rate. Factors discussed include climate change, environmental pollution, noise pollution, congestion and the road wear and tear. When relevant, vehicles are also categorized according to fuel type, engine capacity and Euronorm. The authors also carried out a separate analysis of urban, rural, and highway usage to tease out region-specific conditions such as population density and traffic intensity. The study determined that only fuel taxation is related to vehicle miles traveled. In general, steering traffic taxes tend to over-internalize the external effects. Total steering traffic tax revenue amounts to 3.7 billion euro, while external effects are estimated at 3 billion euro. The authors caution that the internalization rate is not always straightforward and differs significantly between vehicle types. They determined the optimal taxation rate per vehicle segment in each area from an external cost perspective. The authors conclude with a set of recommendations to improve the current traffic taxation.

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  • Authors:
    • Roosen, Jorg
    • Marneffe, Wim
    • Vereeck, Lode
  • Publication Date: 2016-3


  • English

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  • Accession Number: 01605216
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jul 19 2016 2:55PM