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| Pricing not a typical demand side policy? |
| 2006-12-18 15:13:58 : Andrea Ricci : aricci@isis-it.com |
The link between transport pricing reforms and the financing of new transport infrastructures is now explicitly advocated by the European Commission. Although research and policy thinking are still on going on how to use the revenues from pricing to fund the provision of new infrastructure, it is generally agreed that the considerable financial needs associated e.g. to the development of the TEN-T cannot be met without a direct contribution from the charges levied for the use of the existing networks. The mid term review of the White Paper "Time to decide", issued in June 2006, goes further when it states that: "The piling up of revenues from congestion pricing is an indicator of the need for more infrastructure which can be financed, at least in part, from those revenues" Should this be interpreted as a challenge to the conventional wisdom whereby pricing is a typical demand side policy? Andrea Ricci (ISIS, Italy) |