PA’s Ole Lykke Christensen, PA transport expert, discusses the importance of road pricing and how it will help solve traffic problems.
According to Ole, road pricing solves a greater number of traffic-related issues compared to other initiatives: Road pricing not only increases productivity through better use of road infrastructure, it also has a positive effect on the environment:“The transport sector must be independent of fossil fuels by 2050 […] Larger cities struggle with particle pollution from diesel vehicles in particular, and the removal of taxes on electrical vehicles has not been able to kick start the sale of EVs […] It is therefore important to change taxation on vehicles in a way that makes energy-friendly cars a desirable option,” says Ole.
According to Ole, taxation of the transport sector has been an important source of income for the Danish government; however road pricing is necessary in order to ensure this revenue in the long term. In order to kick start the use of road pricing, car leasing companies should be allowed to pay taxes per kilometer dependent on the car’s emission class. Additionally, EVs and plugin-hybrid EVs should no longer pay VAT or registration taxes. Instead these cars should pay taxes per kilometer dependent on the car’s emission class.
“These would be the first steps toward a full restructure […] The approach we suggest is realistic both from a political as well as a fiscal perspective,” says Ole.
Ole Lykke Christensen is a transport expert at PA Consulting Group
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