Modelling Transport in an Interregional General Equilibrium Model with Externalities



study it is assumed that a GPS-based/vehicle metered road pricing system is introduced
throughout Denmark permitting precise identification of the location of a vehicle and thereby its
road use, related in turn to toll level for the road. A range of different toll levels could be
chosen, depending on type of vehicle, time of day, type of road, location, level of congestion
etc. Here a simple assumption is made that tolls are set for cars only at DKK 0.6 per kilometre
in urban areas and DKK 0.3 per kilometre in rural areas, on a 24 hour basis and irrespective of
which type of road, car or level of congestion is involved.

Changes in transport costs are calculated using a) an interregional satellite account for
transport used to determine
levels of transport costs and b) exogenously given interregional
transport costs, based on a digital road map
, Vejnet DK, used to calculate changes in
transport costs.

The data in the interregional satellite accounts are estimated in four steps:

a1) Taking the national make and use tables, national transport activity is determined by i)
transport mode ii) subdivided by transport costs related to intermediate consumption (by sector)
and to private consumption (by component) and iii) by external (transport firm based) and
internal (own transport, within a non-transport producing firm or a household) costs. Six
different modes of transport activity are used in the interregional satellite accounts, four for
passenger transport and two for goods. Passenger transport is divided into car, rail, aeroplane
and other and freight is divided into lorry and rail.

a2) In the second step national transport activity related to passenger transport is subdivided
(using data from the National Travel Survey) by trip purpose: i) commuting ii) shopping, iii)
tourism iv) business travel and v) recreation.

a3) National transport activity is then divided by origin and destination using data on intra and
inter-regional trade (freight and business trip transport activity) and interregional shopping,
tourism and commuting (personal trip transport activity)

a4) Regional transport activity is then corrected (using regionalised National Travel Survey
data) to ensure that the data reflect regional transport activity by mode.

Changes in interregional transport activity for car transportation are estimated using the digital
road map
Vejnet DK. Transport costs in Vejnet DK are based upon both time and distance
where the generalised cost has been calculated as Time costs + Distance costs. Also included
are costs (tickets, tolls) of travelling by ferry and using fixed links. In addition, costs are
calculated both with and without road pricing. The calculations are based on assumptions
shown in Table 1.

18



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