European Regional Science Association
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European Regional Science Association
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The abstract for paper number 377:
Bjarne Madsen, Institute of Local Government Studies, AKF, Copenhagen, Denmark, Chris Jensen-Butler, Department of Economics, University of St. Andrews, St. Andrews,, United Kingdom
Modelling road pricing in an interregional general equilibrium framework. The Danish case
In Denmark in recent years there has been a substantial debate concerning the consequences of introducing road pricing. An experiment using a GIS-based system for continuous on-vehicle road pricing is at present being developed in Denmark. The paper examines some of the regional economic consequences of the full implementation of a GIS-based road pricing system for all roads in Denmark.
A Danish Intereregional General Equilibrium model, LINE, is presented and the model is used to make an initial analysis of the primary regional economic effects. In the first step, price changes as a result of road pricing are calculated. In the second step, changes in regional competitiveness affecting demand is calculated. In the final step, revenue from road pricing is re-entered, in order to ensure institutional balance and the effects on production, income and employment are calculated. The paper also includes consideration of weaknesses and potential improvements of the modelling approach
Unfortunately full paper has not been submitted.