Fiscal impact of electronic fee collection system on long-run efficiency

Abstract

The transport infrastructure is extremely important for economic development and the labour mobility and competitiveness of European economy. However it is becoming increasingly difficult for government to publicly fund transport infrastructures. Therefore the decision to implement toll roads in Europe as a transport-policy instrument is an important shift in the funding of infrastructure. Adoption of appropriate technology has implications on the efficiency of the system. The mathematical model developed upon and simulations were carried out on several scenarios given the different types of technology. The results suggest that DSRC technology employed on motorways to be the most efficient.

Keywords

• electronic toll collection
• funding of infrastructure
• toll roads