The True Costs of Road Transport: How to Make People Aware,

and How to Make Government Set the True Prices

András LukácsClean Air Action Group, Hungary (www.levego.hu)

TCFC VII, Istanbul, August 30, 2007

 

What are the costs of road transport?

Production costs

These are internal, so we do not deal with them here in detail.

However, it must be mentioned that very often it would be more sensible to spend one’s money on something else than cars. (Opportunity cost!)

Road building and maintenance

In Hungary VAT is refunded for motorway constructions

(but not for railway constructions)

Environmental and health damages

 

Environmental and health damages

• greenhouse gases (global warming)• other air pollution• water pollution• soil pollution• noise• other vibrations (especially heavy vehicles)• land use• fragmentation of nature• accidents• traffic jams• hindering users of other modes of transport

(e.g. pedestrians and cyclists)• special urban problems, leading e.g. to

psychological disorders

Environmental damages due to up- and downstream processes

For example:• Manufacturing of motor vehicles• Road building• Oil extraction and refining• Disposal of used motor vehicles

Congestion

Fuel tourism and fuel smuggling

Customs Office

Competitive advantages of road freight transport due to

violation of regulations on traffic safety, working time, truck load

weight etc.

Losses of the state due to the black market practices (tax evasion,

smuggling etc.) by truck drivers

Competitive advantage of road freight transport due to

anti-market financial measures by the state concerning the railway

freight transport

Accounting private use of cars as official use

i.e. evasion of personal income tax and social security tax etc.

by fraud based on car use

This is an enormous incentive to car use in some countries

(Hungary: 3% of GDP)

New houses in the surroundings of Budapest

Subsidies to urban sprawl

Shopping malls mushroom around Budapest

Subsidies to urban sprawl

A huge shopping mall near Budapest – 10 years ago this was a green area

Subsidies to urban sprawl

Advertisements, media

Excise duty on fuel

Annual vehicle tax

Registration tax

Vehicle transfer tax

Environmental fees (e.g. on tires, car batteries)

Kilometer fee for trucks

Motorway tolls

Company car tax

Parking fees

Congestion charge

Extra weight fee

State revenues from cars and trucks

BALANCE OF STATE EXPENDITURES AND

REVENUES FOR TRUCKS IN HUNGARY

Expenditures 10,4 billion EUR

Revenues 0,3 billion EUR

Subsidy 10 billion EUR

BALANCE OF EXPENDITURES AND REVENUES FOR CARS

IN HUNGARYExpenditures 4,1 billion EUR

Revenues 2,0 billion EUR

Subsidy 2,1 billion EUR

All this is only for one year, however these subsidies have been accumulating already for many years!

The distorted prices lead to wrong decisions on all levels. They stimulate the use of unsustainable transport modes.

These processes are not only environmentally unsustainable, but also economically, financially.

The user/polluter pays principle must be applied.

What to do?

Some experiences of the Clean Air Action Group

CAAG and other NGOs hand over a petition for the Prime Minister demanding more funds for public transport and

railways, and less for motorways

„Living streets” organised by CAAG in the center of Budapest

Demonstration at the Hungarian Parliament for an environment-friendly transport policy

CAAG’s demonstration before the Budapest City Hall for stricter parking regulations, increasing parking fees and better use of public space

Heavy trucks cause enormous road damages. In many places they damage also buildings and public utilities.

One 40-tonne truck causes as much damage to the road as 100 000 cars.

Source: New Scientist, 1992

Campaign FREIGHT: FROM ROAD TO RAIL

Funded mostly by the Oak Foundation

Advertisements:• Television• Newspapers• Giant posters• Small posters in metro

Letters to• all mayors in Hungary (3200)• all members of the Parliament• ministers

30-minute film

Wide press coverage

Kick-off press conference of the campaign

Kick-off press conference of the campaign

Conference on truck traffic organised by CAAG in the House of the Members of Parliament

Demonstration of CAAG and local residents agaist heavy truck traffic

Mennyire ért Ön egyet a következő állításokkal?(átlagértékek, 0-100)

33

59

67

82

84

84

88

0 20 40 60 80 100

A nehéz tehergépkocsik üzemeltetői megfizetik ajárműveik által okozott károkat.

A nehéz tehergépkocsikra kivetett díjakat a vasútfejlesztésére kell felhasználni.

A nehéz tehergépkocsikra nagy mértékű úthasználatidíjat kell kivetni.

A kamionok súlyosan szennyezik a környezetet.

A nehéz tehergépkocsikra kivetett díjakat az utakjavítására kell felhasználni.

Elsősorban a nehéz tehergépkocsik teszik tönkre azutakat.

Az áruszállítás sokkal környezetkímélőbb vasúton,mint kamionon.

Nation-wide opinion poll

The Hungarian Parliament this year decided to introduce a kilometer fee for trucks from 1st January 2009.

It also decided to increase subsidies for combined transport.

CAAG’s correspondance with the European Commission

The Hungarian Government is asking for a lot of EU money for road construction. The European Commission is likely to approve this.

CAAG’s position: 1. No aid should be given until all external costs are

internalized. Road users must pay the costs. Otherwise the polluter pays principle will be violated.

2. The SEA of the Hungarian road construction program shows that it will be environmentally unsustainable. According to the EU legislation no EU aid can be given for unsustainable projects…

Thank you for your attention!

www.levego.hu

TCFC Vin the BudapestCity Hall