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Road Pricing in Denmark
Arena special sessionTransportforum
Presented byJens Peder Kristensen
First some background
• Danish registration tax• Toll ring in Copenhagen• Infrastructure commission
Registration tax and VATincreases on car prices
0%
50%
100%
150%
200%
250%
300%
350%
400%
5 0
00
25 0
00
45 0
00
65 0
00
85 0
00
105 0
00
125 0
00
145 0
00
165 0
00
185 0
00
205 0
00
225 0
00
245 0
00
265 0
00
285 0
00
305 0
00
325 0
00
345 0
00
365 0
00
385 0
00
405 0
00
425 0
00
445 0
00
465 0
00
485 0
00
505 0
00
525 0
00
545 0
00
565 0
00
585 0
00
Pri
ce o
f th
e c
ar
aft
er
tax a
nd
VA
T
Price of the car without tax and VAT
Additionaltax and VATto be paid
Basicprice
Reduction in registration taxdue to CO2 emission
-20 000
-10 000
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
To
tal
dedu
ctio
n
Km/l
Gasolin Diesel
The development in CO2 dischargeby the transport sector
Toll ring in Copenhagen
Toll ring in Copenhagen
• Backed by 16 municipalities on June 2008• Council discussions in each municipality
decided to take in Automn 2008• Hit by discussion of border in the
municipality of Copenhagen in Dec. 2008• Hit by the new investment plan proposed
by the government in Dec. 2008.
Views in parliamentParty Members Road pricing Toll RingVenstre 47 Pro AgainstLiberal Alliance 2 Against AgainstSocialdemokraterne 45 Pro Against
Radikale 9 Pro AgainstKonservative 17 Pro AgainstDansk Folkeparti 25 Can be discussed AgainstEnhedslisten 4 Pro ProSocialistiskFolkeparti
23 Pro Prefers road pricing
Andre 7 - -Total 179 145-170 4-27
History
• Infrastructure commission 2006-2007– Not allowed to discuss road taxation– Published January 2008
• Investment plan 2008– Published 8. December 2008– Road pricing is making investment plan green
And finallyDanish Road pricing
Basic principles
• A fundamental change of car taxes• Car drivers should be encouraged take CO2
emission into account, not only when buying acar, but also when driving.
• It will be possible for more families to buy a car• It will be attractive to buy an environment friendly
car• Both Danish and foreign trucks shall pay for the
tear on the roads
Timing
• Laws will be proposed in parliament in theperiod 2009-2010
• Green taxation of trucks will be introduced by2011
• Green taxation of cars will start by 2015 and beintroduced over several years.
• This allows the necessary time for developingand implementing the right technical solutions
Taxation principlesRush hours time outside rush
Good public transport Bad
Polluting CAR Clean
High Road congestion Low
HIG
H
LOW
Change in tax on cars• Minimum 50% reduction of registration tax• That will increase the incentive to buy environmental
friendly cars• The change in registration tax will be introduced over
several years to avoid destroying the used car market.• Cars registred before road pricing is introduced will have
paid full registration tax• Laws will be introduced that ensures no double taxation
Technology• Based on GPS registrering where and how far the car is
driving• No registration of the movement of citizens• Only information on the most overall level necessary for
invoicing will be sent to the goverment.• The goverment will establish a system that is easy to use
for foreigners.
Comment-1
• A lower registration tax will– Increase car owner ship and thereby driven
km– Increase car size and thereby CO2 emission– Shorten car-life time and thereby increase co2
emission to production and destruction.• Cheap km tax on country side will
– encourage more driving (in larger cars)
Comment-2
• Trucks don’t have registration tax inDenmark
• With the tax stop only the payment relatedto the eurovignette can be converted
• It is 18 øre pr km in average• Much less than the anticipated 122 øre
Comment-3
• With tax stop• Where should the cost of introducing and
operating the system be covered from?• Implementing cost is between 4-8 mia dkr• Operating cost will probably be up to ½
mia. dkr pr year.
Comment-4
• Some politicians are talking aboutintroducing the paper vignette as atemporary measure until we are ready forthe full blown road pricing
Model of effects
