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COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(75)493
Vol.1975/0189

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OFTBSEUROPEAN COMMUNITIES
COM(75)493 final
Brussels,3October1975_
Commission'sInterimReporttothe
CouncilofMinistersonChargingforthe
UseofTransportInfrastructures
COM(75)493final

LIS?OFCONTENTS
Pa-^e
Summary 1
PartI:Introduction and"basisofreport 3
A.Backgrcund 3
B.WorkprogrammerequestedbytheCouncil 4
C.Purposeofthereport 4
PartII:Reportoninfrastructure chargingstudies c
A.Infrastructure charging-thegeneralsystem o
B.Thetaxationofcommercialroadvehicles 8
C.Urbanstudies 10
D.Thedetermination ofmarginalsocialcosts 12
-Marginalcostofuse:roads 13
-Marginalcostofuse:railvays 13
-Marginalcostofuse:inlandwaterways 13
-Marginalcostofcongestion 14
-Marginalcostofnoise 16
-Marginalcostofairpollution 16
-Marginalcostofaccidents 16
E.Budgetaryequilibrium charges 17
F.Reportingoninfrastructure expenditure anduse 18
G.Miscellaneous 19
-Theselectionofinvestments 19
-Internatio?ialwaterways 20
-Theaveragingofinfrastructure charges 21
PartIII:Conclusion 23
Appendices
I-DraftCouncilDecisiononInfrastructure Charging

LISTOFCONTENTS(continued)
Appendices
II–Approachestourbancongestioncfostdetermination
III-Studyofnoiseandairpollution "byurbantraffic(V.D.I.)-Summary
IV-Infrastructure chargingandtheselectionofinvestments
(GWILLIAM/ZIGHERA)-Summary

1.In1971theCommissionproposedtheimplementation ofInfrastructure
ChargingasamajorsteptowardsaCommonTransportPolicy.Theobjectviaa
toidentifyalltheCostsarisingfromtheuseofroad,railandinland
waterwayinfrastructures ,tofindoutpreciselywhocausedthesecostsand
subsequently torecoverthecostsfromtheusersresponsible.Identification
wouldclarifythecostoftakingdecisionsintransport.Costallocationand
chargingwouldleadtobetteruseofexistinginfrastructures andhelpto
equalizecompetitiveconditionsintheindustry.
2.The,CommissionthereforesubmittedtotheCouncilaproposalfor
introducingaCommonSystemofChargingfortheUseofTransportInfrastructures .
Beforeadoptingthisproposal,theCouncilcalledfordetailedstudiesofthe
potentialimpactofInfrastructure Chargingonrail,roadandinlandwaterway
transport.Inparallelwiththesestudies,workwasalsocarriedoutonthe
specialproblemsofurbaninfrastructures ,onthetaxationofcommercial
roadvehiclesandonthereportingofdatarelatingtoexpenditure onandthe
useofinfrastructures .
3.ThisInterimReportshowsthesubstantialprogressmadesince1971»
evenifnotallthestudieshavebeencompleted.Afurtherpapertoanalyse
outstanding problemsandindicatepossiblefuturelinesofactionwillfollow.
4»Thestudiesnaturallyconcentrated onthemosturgentandimportant
questions -.SinceMemberStateswereprimarilyinterestedingoodstransport
byroad,muchmoreworkwasdoneonroadsthanonrailwaysorwaterways,
whilstinterurbanfreightmovementsweregivenpriorityoverpassengertraffic

andspecialurbanproblems.Considerable progresswasmadeinidentifying
thevariouscosts,butratherlessisknownonhowtheymaybeallocatedand
subseT-iently chargedtousers.
5.TheReportthusshowsinwhichdirectionsitwillbepossibleto
advancefairlyquickly.Italsomakesitclearwhereimportantproblems
remainwhichmaycallfornewapproachesofaimandmethod*Onethingstands
outclearly:theinterestshorninInfrastructure Chargingbygovernments
andothersintheworldoftransportindicatestheimportanceofthesubject
andtheurgentheedtomakefurtherprogress.
./•

-3-
PartI.... -.•
Introduction andbasisofreport
A.Background ..■„ V •
6.OneoftheimportantelementsintheCommonTransportPolicyisthe
conceptofInfrastructure Charging.Thisenvisagesfirstofallidentifying
allthecostsarisingfromtheuseoftransportinfrastructures andthen
findingoutpreciselywhocausedthem..Thesubsequentstepistorecoverthese
costsfromtheusersofroad,railandinlandwaterways.
7. ■:TheaimsofInfrastructure Chargingrelatetothe-above..steps»
-identifyingormakinginfrastructure coststransparentmainlyhelps .„
toclarifytheeffectoftakingdecisionsintransport;
-allocatingandchargingcostshelptoachievefetteruseofexisting
infrastructures andtoequalizecompetitiveconditionsintheindustry.
8.AccordinglyinMarch.1971»theCommsssionsubmittedaproposalfor,a
CouncilDecisionontheintroduction ofaCommonSystemofChargingforthe
Useof.Infrastructures ,accompaniedbyaMemorandum(l)providingdetailed ,
background.InDecember1971theCouncilrequestedMemberStates(2)to,
carryoutandtheCommissiontocoordinatedetailedstudiesontheimpactof
theseproposalsonroad,railandinlandwaterwaytransport.TheCouncil
alsoaskedtheCommittee ,ofPermanentRepresentatives toexaminespecific v-j,
relatedproblems.
(l)O.J.No.C62,22June1971
(2)Doc.R/38/72(TRAITSl)13Januaiy1972.
.V...■.•"V•/*'

-4-
9.Concurrently,workwaspursuedontheproposedfirstCouncilDirective
ontheAdjustmep_t._of .NrjionalTaxationSyr-ternsorCpnmerciajL _RpadVehipies(l)
submittedinJuly1963andonESCRegulation1108/70(2)whichprovidesa
reportingsystemfor^^encTitureonandtheUseofTransportInfr_astruptures,
whilstinJanuary1970theCouncildecidedonspecialstudiesonUrban
Infrastructure,problems(3).
B.Workprogramme ,re^estpdby_the_Council
10.Asindicatedinpoint8abovetheCouncilrequestedthataspartof
thegeneralInfrastructure Chargingwork,thefollowingquestionsrelatingto
thethreemodesoftransportshouldbestudiedbyMemberStatestogetherwith
theCommission :
a)themarginalcostofuse5
b)othermarginalsocialoosts;congestion,noise,airpollutionandaccidents }
c)budgetaryequilibriumcharges;
d)totalexpendituretobecoveredbytransportusers.
11.Inadditiontothefourmainstudyareasabove,theCouncilrequested
thateightspecificpointsshouldbeexaminedbytheCommitteeofPermanent
Representatives :
a)theconnexionbetweenInfrastructure Chargingandtheselectionofinvestments ?
b)thelegalbasisforInfrastructure ChargingonInternational Waterways!
c)theaveragingofcharges!
d)methodsofchargingintheroadsector; s
(1)Doc.(68)651finalandO.J.C95,21September1968
(2)O.J.No.L130,15June1970
(3)O.J.No.L23,30January1970.
./•

-5-
e)arrangementsconcerning -privatecars?
f)therelationship betweenexcisetaxesonpetrolandthoseongasoilj
g)institutional provisions ?
h)temporaryarrangementsforrailways.
C.Purposeofthereport
12.ThepurposeofthisReportistomeettheCouncil'srequesttobe
informedoftheprogressmadeandtheresultsofthemanystudiesinhand,
vlhilsttheReportmaybereadonitsown,anumberofAppendicesareprovided
forthosewishingtogointomoredetail.
13.Muchprogresshasbeenmadesince1971»butthepacehasbeenslower
thanhopedfor.Plannedoriginallyforcompletionin1973,studieshavebeen
delayedpartlybecauseoftheenlargement oftheCommunityandthe
consequential reorganization oftheCommission'sDepartments andpartlyfor
sheerlackofnationaldata.Moreover,newproblemswhicharoseduringths
studiescausedsomechangesofdirectioninthiscomplexfield.Inorderto
avoidthefurtherdelaywhichwouldhaveresultedfromanattempttocomplete
allthestudiestheCouncilagreedthatanInterimReportshouldbepresented.
14*ThemajorquestionstreatedinthisReporthavebeenstudiedby
workinggroupsandoutsideexpertstodifferentdegreesofdepthanddetail.
MoreoversomeofthemformpartofseparateproposalsforCommunityaction.
Ithasthereforebeenconsideredusefultoreportresultsdirectlyunder
eachheadingaswellastogroupvariouselementsunderthemoregeneral
conceptsoftheInfrastructure ChargingSystem,theTaxationofCommercial .
RoadVehiclesandUrbanStudies.
15«Inaddition,attherequestoftheCommitteeof.PermanentRepresen­
tatives,theCommissionfurnished ,specificcontributions onthreeofthe
detaileditemsentrustedtotheformer;theCommissioin'sviewsonthe
remainingfivepointswereheldtobeadequatelycoveredbyits1971
Memorandumalreadyreferredto.
./•

PART II
Report (*ninfrastructure changing studio s
A.Infrastr uctur echarging:thegeneral system
Basis and aims
16. Infrastructure charging isbased ontheidea that thefull costs
which arise from theuseoftransport infrastructure should beidentified ,
allocated toand 'borne byitsusers .Its major aims are toassist decision
taking bymaking costs clear andtransparent ,toimprove theuseof .,
existing infrastructures ,toharmonise conditions ofcompetition intrans­
port ,andtoprovide financial resources tocover both operating and
investment costs .
17. Theintention isthat ^11thecosts attributable toamode of
transport ,andwithin that mode toeach category ofusers ,should be
id&aiifisd ,allocated andpaid for .Inprinciple ,revenue from the
charges should beused tomeet these costs and inparticular tooperate
and improve infrastructures .
The ■System ■'
18. Thedraft Council Decision ,which wasamended inAugust 1974 follow­
ingadvice from theEuropean Parliament andtheEconomic andSocial Committee ,
maybefound in'theAppendices (No,I).Inbrief ,thesystem envisages
that transport users should pay :
a)themarginal social costs caused "bytheuseofinfrastructures ;
b)a"budgetary equilibrium charge designed tocover anydeficit between
total expenditure and .revenue derived from charging marginal social
costsm
/.

-7-
19.Asdefined ,here,marginalsocialcostsarethoseattributabletoan
incrementalunitoftrafficandfallintotwomaincategories :
a)themarginalcostofvise,i.e.theincreaseintheexpenditureimposed
ontheovjneroftheinfrastructure bytheextratraffic 5
b)other(orexternal)marginalcosts,i.e.theincreaseinthecosts
externaltotheexistenceoftheinfrastructure ,butarisingfromitsuse
andsubdivided into:
(i)themarginalcostofcongestion,i.e.theincreaseincostsimposedon
therestofthetrafficbytheextratraffic;
(ii)othermarginalexternalcosts,i.e.theincreaseinallotheroosts
suchasthoseofnoise,airpollutionandaccidentscausedtosociety
bytheextratraffic.
20.Expenditures tobecoveredinclude:
a)operating,maintenanceandgeneralexpensesforinfrastructures ;
b)infrastructure investments ,madeupofdirectexpenseswhereloanfunds
arenotusedaswellastheinterestonandamortization ofanyloan
fundtalcenup;
c)expensestomeetcongestionandotherexternalcosts.
Theexpenditure shouldrelateonlytothetransportfunctionofthe
infrastructure concerned .
21.Inachievingbudgetary,equilibrium problemsarisebothoftimeand
place.Tosolvethedifficulties relatedtotime,aperiod .ofseveralyears
shouldbeusedtodetermineandtherefore .averageoutcosts,trafficvolumes ,
andchargestotheusers.Hiespatialproblemsconcernthegeographical or
physicalextentoftheinfrastructure netvjorkrequiredtobalanceitsbudget;
theyareamatterofcross-subsidization withineachmode.Abalanced
•A

o-u-
approachisrecommencedhere"becausehighinfrastructure chargesfora
specificnetworkmightunnecessarily discouragedemandwhilstcharges
averagedoutoveralargeareauouldnot"beaneffectivetoolfcpappraising
investmentproposals.
Impactontransport • >
22,Sincethecurrentsituationandtheoperatingcharacteristics ofthe
three'modesofinlandtransportarenotthesawe,therepercussions of
Infrastructure Chargingonthemwilldiffer.Alongperiodofadaptationto
Jthefullsystemaswellasspecialtreatmentofparticularproblemsare
thereforenecessary..
23..Forexampletherailwaysareatleastinprincipleresponsiblefor
alltheirinfrastructure costs.According^,wheretheycompetewithroads
orwaterways,allowanceshouldbemadeforthedegreetoifhicheachofthese
competingmeansoftransportactuallycoveritsinfrastructure costs.
24.Forwaterways,substantialphysicaldifferences betweennetworksmay
callformoredetailedinvestigation ;moreoverin.thisfieldthereisawide
gapbetweencostsandtherevenuecontributed byusers.
25.Problemsintheroad,sectorarebothmorecomplexandmoreurgentthan
forrailandwaterways.Thefollowingtwosectionsdealwithworkdoneonthe
taxationofcommercialroadvehiclesandthespecialproblemsofurbanareas.
B.Thetaxationofcommercial roadvehicles
26.FormanyyearspriorityinthefieldofInfrastructure Charginghas
beengiventocommercialroadvehicles.Followinga19^4proposaltoeliminate
doubletaxation,adraftfirstCouncilDirective,providingforthe
AdjustmentofNationalTaxationSystemsforsuchvehicles,wassubmittedin
1968(I).Muchdetailedworkhasbeencarriedoutinthisfield,rightupto
(l)O.J.No.C95of21Septemberi960

theApril1975report(l).AtitsmeetinginDecember1974theCouncil
stateditsintentiontodiscussand,ifpossible,toadopttheDirectiveat
itsnextmeeting;thetextcurrently "beingexaminedbytheCouncilsTransport
Groupmay"befoundintheminutesoftheirmeetings(2).
27.ThebasicprinciplesofthisfirstDirectivearethatthespecific
taxespaidlayacommercialroad,vehicleshould:
a)takeintoaccountandatleastcoveritsmarginalcostofuse?
b)bemadeupoftheexcisetaxeongasoilandavehioletax,thelatter
beingcalculatedinaccordancewithcommonmethodsthroughoutthe
Community.
.1. { .^ I■ . I ·*■'· '
20.Indevisingsuchasystemmanytechnical,economicandfiscalaspects
wereexamined,including:
a)methodsforcalculatingmarginalcostsofuse.(seeparas39-44)?
b)thecalculationofexcisetaxesongasoilj.'
c)thefieldofapplication(e.g.extentofroadnetwork,lowerlimitof
vehicletonnage,exemptions)}
d)taxationpractices(e.g.lorriesandtrailersseparatelyortogether)?
e)adaptabilityofthesystemtochangesincosts,fueltaxeseto.j .
f)theproblemsofthe"supplement"tpbeaddedto.marginalcostsofuse.to;
ensuretherequiredlevelofrevenue,fromtaxesonvehiclesandfuel.
29.Pacedwiththesemanyproblems,greaterscopeisbeingprovided ,for
specificnationaldifficulties tobeovercome,whilstretainingthebasic
-principles <oftheproposedDirective.Forexamplecostcalculation methods
arebeing;handledmoreflexibly ,toovercomeproblemsduetolackofdata,and
differencesinnational^accountingsystems.MemberStateswillbe.freeto{
■' ■■■ '*' •
(l)Doc.SEC(75)1310of7April1975 "
(3)Doc.R/I429/75(TRAITS45)of4June1975

-10-
taxdrawingvehiclesandtrailersseparatelyorasacom"bination,whilst
optionaladjustmentstotheCommunitysystemwillallowbetteralignmentwith
taxesonvehiclesnotcovered "bytheDirective.Finally,itisimportant
tostressthatinthisfirstproposalnoattemptisbeingmadetoharmonize
taxrates.
30.Asregardsinternational transport,theDirectiveproposesthatvehicle
taxesshouldbe'paidonly;intheMemberStateofregistration evenifthe
vehicletravelsonroadsofotherMemberStates;thisisknownasthe
principleof"nationality "ratherthanof"territoriality"' .,.
31.ThedraftDirectiveconstitutesonlyafirststeptowardsharmonization
ofvehicletaxesandfurtherpossibledevelopments aretobeconsidered ,such
as: .
-harmonizingtaxratesforinternational goodsvehicle ,traffic;.
-harmonizing excisetaxesonfuels;
-basingthesystemonrealratherthanonnominalaxleloads;
-improvingcostcalculation methods. ■
Suchfurtherdevelopments shouldbearinmindtheneedforusers,
transportfirms,vehiclemanufacturers andtheauthoritiestobegiventime
toassessandassimilatetheeffectsofanynewsystem.
C.Urbanstudies
32.TheCommission'sPilotStudyonInfrastructure Charging(l),considered
thatthespecialproblemsofdeterminingurbaninfrastructure costsandtheir
allocationtousersshouldbeexaminedseparately.An"UrbanStudies"groups
(l)Doc,SEC(69)700finalof12MarchI969 >

-11-
i-asthereforesetupandinJanuary1970theCouncilapprovedtheinitiation
ofstudiesofmethodsforcalculating andchargingallthemarginalsocial
ι
costsreferredtoinpara19*
33.Tostartwith,datawerecollectedonfourlargeandonemedium-
sizedEuropeancities(Amsterdam,Brussels,Cologne,LyonsandVerona)
showingtheinfrastructure network,trafficcharacteristics ,parking
facilities,publictransportetc.Withsuchdatainhand,theimportant
phenomenonofcongestionwasstudied "bymeansoftrafficspeed-flowanalyses
intheseoitiesandvaluableinformation obtainedonthecomplexities of
trafficflow,;especiallyincentralurbanareas.Coupledwithinvestigations
intothevalueofusers'time,thesestudiesallhelpedtodealwiththe
determination' ofcongestioncosts,asreportedinparas46-51*I*1
additionsomeMemberStatescarriedoutspecialstudies:Germanyonthe
costofenvironmental pollutionandBelgiumonpracticalchargingsystems.
34»Thecostsofenvironmental pollutioncausedbytrafficnoiseand
vehicleemissionswerestudiedinamulti-disciplinary reportsponsoredby
theCommissionandcarriedoutbytheVereinDeutscherIngenieure(V.D.I.).
Theconclusionsofthiscomprehensive 1100pagedocumentarebriefly
summarizedinparas52-54butsincetimehassofarpermittedonlya
cursoryexamination muchmoreworkwillhavetobedoneinthispotentially
significantfield,wherecostsatleastinurbanareasmightbeofthesame
orderofmagnitudeasvehiclefuelcosts.
35.Stillinthefieldofcostdetermination ,itwasconcludedthat
methodsforcalculatingthemarginalcostsofuseofnon-urbanroadscould
beappliedintowns.Consideration ofthemarginalcostofaccidentswas.
deferred,sincethemethodsetoutinthePilotStudycouldbeusedmeanwhile.

-12-
36.Astudyofpracticalsystemsofchargingfortheuseofurban
roadswascarriedout"bythe'SocieteBeige"DfEconomieetdeMathematique
Appliquees(SOBEHAP),takingBrusselsasanexample,itwasconcludedthat
thesystemmostlikelytosucceedhadtobe
-acceptablelegallyandadministratively ?
-understandable tousers,
-reasonablyequitable,and
-effectiveinreducingcongestionwithouttransferringitelsewhere.
Asimpleformofsupplementary licensingwasthoughtonbalancetobe
thesystemmostlilcelytofulfiltheserequirements .
37.Inconclusionitmaybesaidthatthemajorelementsinvolvedin
urbancongestioncostshavebeenstudied.Feasiblemetholdshavebeen
developedforcalculating congestioncosts,buttheycannotyetbeusedasa
basisforurbanroadchargingsystems.Furtherdiscussionandstudiesare
neededtodeveloptheseeconomicmeasuresandintegratethenintothetotal
contextofurbantransportplanning. .
D.The.determination ,of.marginal _social_costs ....
•L
38.Asindicatedinearlierchapters,marginal(social)costsfallinto
twomaincategories :
a)thecostofuse,i.e.essentiallywearandtear
b)other(external)costs:congestion,noise,airpollutionandaccidents.
TheCommission'sWorkingGroupsanalysedthesecostsseparatelyfor
thethreemodesoftransportandaspartoftheoverallstudiesreferredto
inChapter-IIA-C.
./•

-13-
Ifar^rinalcostofuse-roads
39^^.iringthepreparationofthecraftDirectiveonthetaxationof
commercialroadvehicles,theWorkingGroupconcerneddrewupanAnnex(l),
mostofwhichdealswithmethodsforcalculatingthemarginal(social)cost
ofuse.Thisincreaseinthecostofoperating,administering ,maintaining
andrenewingroadinfrastructures causedbyanadditionaltrafficunit
includestrafficpolicecostsaswellas"wearandtear".
40.Roadmaintenance andrenewaloperationsaredividedintofixedcosts
andthosewhichtendtovarywithtrafficlevels;thelatterareallocated
tocommercialvehiclesaccordingtothreecriteria >vehicles-km ,nominalaxle
weightsandnominalaxleweightstothefourthpower.Ineachvariablecost
categorythercarginalisable proportionisascertained byoneofthreemethods
whichprovidestatistical comparisons ofcostandtrafficlevelsovertimeor
inspace,orwhichanalysetherelationofcoststotrafficinaqualitative
manner.Foreachofthethreecriteriamentioneditisproposedtofixa
minimummarginalisableproportion .Takingintoaccounttheapproximate
characteroftheunderlyingdata,theprocedureallowsamarginal(social)
costofusetobeallocatedtoeachtypeofvehiclewithreasonableaccuracy.
T.Jherecostdataarenotavailableassuch,expenditures areusedasabasis.
41.UpontherequestoftheCounciltheMemberStatesundertookwithout
encountering majordifficulties ,a"test1'calculationofthemarginalcosts
ofusefor1971onthebasisofthemethodsdescribedintheAnnex.The
Commission'sDepartmentsdrewupareport(2)reproducingthecalculations
ofeightMemberStatesandcomparingtheirresults.
Marginalcostofuse-railwavs
42.TheHoikingGroupconcernedproducedadraftpaper(3)dealingwith
methodsforcalculatingthemarginal(social)costsofuseofrailway
(1)Doc.R/2750/74(TRA1IS174)
(2)Doc.SEC(75)1310
(3)Doc.CTl/aTl/05-2/74

-14-
infrastructures alongthelinesoftheoneworkedoutforroads.*•Costsafre
tobeallocatedaccordingtowhethertheyvaryinrelationtogrosston-km
worked,train-kmandthenumberoftrains;electricpoweroutputandcopper
consumption mayalsoberelevant.Asforroads,minimumratesof
marginr„lisationmayhavetobedeterminedforthesecategories.
43.Initialcalculations byMemberStatesofthesecostsfor1971seem
toshowlowermarginalisationratesthanthoseforroads,butdetailed
analysisisstillunderway.
Marginalcostofuse-inland_waterways
44°'TheWorkingGroupconcernedhaspreparedadraftpaper(l)oh
calculating methodsalongthelinesproposedfortheothermodesoftransport.
Costsaretobeallocatedaccordingtowhetherthe.yvaryinrelationto
vessel-4an,deadweightton-km,thenumberoflockcyclesorthenumberof
vesselspassingthroughlocks.
45•Thefirstcalculations carriedout,particularly byPranceand
Germany,havehighlightedthepracticalproblemsresultingfromthevery
detailedbreakdownofboththenetworksandtheexpenses.Theseproblems,
andsuchmattersasequivalencecoefficients forvesselcategoriesand
calculationsforotherMemberStates,willrequirefurtherexamination .
Marginalcostofoongestion
46.Recentworkoncongestion'oostshasconcentrated opurbanroads,.
wherecongestionplaysaparticularly importantrole.Railcongestionwas
discussedinthePilotStudy,whichalsoconsideredthat-methodssuggested •
forroadcongestioncostscouldapplytoinlandwaterways.
(l)Doc.CTI/GT3/04-2/74
< ''"''

-15-
47*Threeelementsmaybedistinguished incongestioncostst
-timelost"byroadusers;,
-increasedfuelconsumption andvehiclemaintenance ;:
-theimmobilisation offreight. ?s
48.Timelost"byroaduserswasconsidered "bytheUrbanStudiesGrouptoi
bethemostimportantelement,requiringpriorityattention.••Toevaluate v
itbothitsamountanditsvaluehavetobedetermined.' Theamountoftime
lostmaybederivedfromtherelationship oftrafficspeedtoflow,or
trafficdensitytoflow.Caremustbetakentodistinguishbetween *"r
relativelystable"conditionsandunstablesituationswhichmayoccurwhen
trafficsaturationisreached.
49•Inordertodealwithbothsituations,four.methodswereidentified
asacceptableapproachestoquantifyingthetimelostbyusers,withthe
choicedependingontheparticularproblemsandtechnicalpreferences .of,the
individualurbanauthorities .Moredetaileddescriptions ofthesemethods
areincludedinAppendixII.
50.Thevaluationofthetimeoftransportusersinmonetarytermswas,
studiedbothnationallyandatinternational levelviatheECMTRoundTable
Conferences .Despiteremainingproblemsprogresswasmadetowardsdeveloping
asimplemethodology whichwoulddistinguish workingandnon-working time,
andwouldvaluethesetimecategoriesasapercentageofgrossornet.
income. ,..r,r..|'/...:■X ■-•'V.;■v
31.Increasesinvehicle,costswereratedsecondinimportancetotime
lostbytransportusersandtheyshouldgiverisetofewerproblemsof
calculationmethods.Theimmobilisation offreightWasheldbythePilot
Studytobeaminorfactor.Bothelementsmaythereforebeconsideredata
laterstage*- . •./.

Marginalcostofnoise
52.Roadtrafficisrecognisedastheprimarysourceofenvironmental
noiseinvirtuallyallMemberStates.'TheVDIresearchteamreferredtoin
ChapterIII.Cattemptedtoevaluatethecostoftheeffectsofnoise,but_
concludedthatthiscouldnotbedonedirectly.Asthesummaryoftheir
report.inAppendixIIIshows,theyadoptedanindirectapproachby
calculatingthecostsofbothactiveandpassivenoisepreventionor
elimination measures.Activepreventionreducedthenoiselevelatemission
sourceby.e.g.improvedvehiclesilencing }passivepreventionprotectsthose
affectedbytrafficnoisebyprovidingsoundinsulatedwindox/s,screen;;alls
improvedstreetsurfaces,tunnelsetc..Costestimatesrelatedtoconditions
inGermanywereprovided.
Marginalcostofairpollution
53<Urbanairpollutioncausedbyvehicleemissionsisdeterminedby
traffic-related characteristics Buchasdensityanddrivingconditions(stop
goorsmoothflow)andbyvehicle-related characteristics suchasengine
typeandsise.
54*AsinthecaseoftrafficnoisetheVDIexpertsadoptedanindirect
approachbyestimatingthecostofmeasurestopreventoreliminateharmful
effects.AppendixIIIshowsthatreductionsof40%inpresentemission
levelsofcarbonmonoxide,andof30$fornitrogenoxides,wereenvisagedas
beinginlinewithcurrentthinkingaboutpetrolengineexhauststandards.
Again,theexpertsestimatedpotentialmarginalcostsapplicabletoGerman
conditions .
Marginalcostofaccidents
55.ForthepurposeofInfrastructure Chargingitwouldappear'thatthe
costofaccidentsisimportantonlyforroadsandmaybedisregarded vrtien

-17-
consideringrailwaysandinlandwaterways.Theevaluationorroad,accidents
costshasbeenthesubjectofmanystudiesandwasalsoexaminedinthe-.
PilotStudywhichprovideddetailedproceduresforcalculatingthemarginal
costsofaccidents,takinginsuranceintoaccount.
E.Budgetaryequilibriura charges '
56.Thereisalmostinvariablyafinancialdefioit "betweentotalexpenditure
ontransportinfrastructure andtherevenuederivedfromchargingmarginal
socialcosts.Suchadeficitshouldberecoveredfromtheusersintheform
ofbudgetaryequilibriumcharges.
57.Theproblemsofdevisingappropriate methodsforattributingthese
equilibriumchargesto.userswereoriginallyinvestigated byProfessor •C.J.
OORTandsubsequently revisedbyDrs.MAASKANTinacomprehensive report ''
finallycompletedinJune1975»Thisreportwhichreliesextensively onthe
"ALLAISReport"(l)andthePilotStudyexaminesinconsiderabledepththe
theoryofwelfareeconomicswhichleadstomarginalsooialcostpricing'-and
theoptimumallocationofresourcesinthewholeeconomy..Basedon,thisvv
examinationfivealternative methodsofsettingequilibriumchargesare
identifiedandtheirmeritsareevaluatedbothintheoryandasregards
practicalapplicability totransportinfrastructures . ~
58.Themethodfinallyrecommendedisthatequilibriumchargesshouldbe
equalorproportional toaiarginalsocialcostswhichwouldprevailiata
lower(hypothetical optimum)levelofinfrastructure capacity.Therationale
behind,thisproposalisthat,whenthecapacityoftheinfrastructure is
largerthanisnecessaryfortheactuallevelofuse,adeficitwillarise
becausetherevenuefromoptimumpricingatmarginalsocialcostwillnot~
covertotalcosts.Theusersthereforebenefitfromthislargercapacity
(l)OptionsinTransportTariffPolicy.Studies:TransportSeriesHo.1,
Brussels1965*

-10-
bynotpayingthehighermarginalsocialcostswhichwouldprevailatthe
lowerlevelofcapacity.
Waysandmeansofapplyingtheproposedmethodtothevariousmodes
andinfrastructures arereviewedandthepossibleeffectsassesse 1.
59-ItisemphasizedthattheOORTreporthasnotyetbeenanalysedin•
depthbyeithertheCoramissich.'sDepartmentsorbygovernmentexperts.
P.Reporting^oninfractrupturee^enditureand.use
60.Toprovideastatistical andaccountingbasisforanInfrastructure
Chargingsystem,dataoninfrastructure expensesandu^eareneeded.These
arereportedannuallybyMemberStatesforthethreemodesoftransportin
accordancewithRegulationIIO0/7O(l).
61.Expensesaredividedintoinvestment,operations,police(exceptfor
railways)andoverheads,whilsttrafficdataareprovidedin
-vehicle-kmandaxle-kmforroads;
-train-kmandgrosston-kmworkedforrailways,and'
-vessel-km,deadweightton-Ianandnumberofvesselspassinglocksfor
inlandwaterways.
62.Sofar,reportsdealingwiththeyears1971(2)and1972(3)have
beenissued;theyincludedatawhichthethreenewMemberStatesreported
unofficially inadvanceof1974whentheaboveRegulationbegantoapplyto
(1)O.J.L130,15June1970
(2)Doc.SEC(74)5285final
(3)Cai(75)312final •A

-19-
tothem.Itisintendedtosubmitthereportfortheyear1973"tothe
Counciltowardstheendof1975*
63.'Theexpertsconcernedhavebeguntodiscussproblemsencounteredin
applyingthisRegulationaswellaspossiblemeasurestobringitmoreinto
linewithcurrentInfrastructure Chargingdevelopments .Themainpointsare:
a)identifyingthetransportshareoftotalinfrastructure expenditure;
b)breakingdowninvestmentexpensesintonewconstruction andextensions
ontheonehand,andreconstruction andrenewalontheotherhandf
c)analysingexpensesinaccordancewiththecriteriacurrentlyusedfor
variation(seepara40)|
d)layingdowncriteriafordifferentiating urbanandnon-urbanroar'<35
e)reducingthefrequencyofreportingcertaindata;
f)methodsforascertainingrealaxleloads.
G.lliscellaneous
Theselectionofinvestments
64.Astudywascarriedoutduring1974byProfessorsK.M.(SJILLIAMand
J.A.ZIGH3RAontheinterdependence aatweenasystemofinfrastructure
charging,basedonpricingatmarginalsocialcost-withbudgetaryequilibrium ,
anddecisionmakingininfrastructure investments .Abriefsummaryofthe
studymaybefoundinAppendix17.
65.Inanalysingtherelevanteconomictheorytheauthorsexpressedsome
criticismofthevalidityofbudgetaryequilibrium butdidnotsuggestany
practical ,alternative .TheyheldthatinprincipleInfrastructure Charging,
besettingvaluesonexternal,non-quantifiable effectssuchasnoise,air
./•

*-20–
pollution andaccidents ,hadanimportant bearing oninvestment decision
making -.Ininterurban situations ,cost-benefit analysis techniques could
adequately deal with themainly tangible factors involved andtheproject
rate ofreturn should notdepend greatly onthepricing policy adopted .
66. Inurban areas ,however ,congestion andmany factors outside transport
played amore important role .Simple financial target setting wastherefore
less likely toresult inanoverall optimum andpriority should begiven to
achieving what wasconsidered tobethe "right "traffic pattern onoverall
planning grounds .
67* Asabroad conclusion theauthors felt that current Community
approaches toInfrastructure Charging were compatible with investment
selection provided their connexion wasrecognized ;theseparate development
ofeach should notbedelayed because ofthis interaction .
Professors Gwilliam andZighera also underlined theproblems which
mayarise inunderdeveloped regions regarding thefinancing of"stimulating "
investments which will notpaytheir wayduring theearly years ifthesystem
isapplied without flexibility .These problems should beanalyzed andsolved
before adefinite system isadopted .
International vrvterways
66. Thequestion relating tothelegal basis forInfrastructure Charging
oninternational waterways isoneofdetermining whether the1863 Actof
Mannheim ,which exempts Rhine shipping from allcharges "based solely onthe
actofshipping ",iscompatible with infrastructure charges .
69. Firstly' itneeds tobestated that according tothejurisprudence of
theCourt *ofJustice article 234oftheTreaty does notpermit theHember
States toinvoke between them therights and obli.gations ofprevious
agreements ihorder toevade obligations due tc>theTreaty ;itrestricts

-21-
itselftoguaranteeing obligations ofpreviousagreementswiththirdcountries.
Asaresulttherearenojuridicalhindrancestotheapplication ofthe
chargingsystemforinfrastructures excepttoundertakings establishedin
athirdcountrywhichclaimsforitsnationalstherightsundertheMannheim
Act.Itfollowsthattheproblemprimarilyconcernsrelationswith
Switzerland .
Thoughitisdifficulttoexpressafinalviewwithoutthecharging
systembeingdefinitivethegeneralopinionoftheCommissionisthat
paymentsfortheuseofinfrastructures arecompatiblewiththeActof
Mannheim.TheexemptiongrantedinthisActisnotaimedatchargesfora
servicerenderedx^hichisfullyjustifiedbytheneedtorecoverexpenditure
onimprovements totheRhine.Itwillnodoubtbenecessarytodisciissthese
problemswithSwitzerland whenamoreadvancedstagehasbeenreachedinthe
development ofthechargingsystem.
Theaveragingofcharges
70.Theextenttowhichinfrastructure chargesshouldbeaveragedover
networksisconnectedwiththeproblemsrelatingtothedetermination of
equilibrium charges.These,itwillberemembered ,shouldfurnishthe
additionalrevenuerequiredtocoveroperatingandinvestmentexpenseswhere
chargingatthelevelofmarginalsooialcostsdoesnotallowthebudgettobe
balanced.Itisamatterofcross-subsidisation withineachmodeof
transport,definedintermsofthesystemorthegeographical areaforwhich
budgetaryequilibrium mustbeattained.
71.Ifchargeswerecalculatedforaparticularinfrastructure orasmall
network,theusersconcernedwouldbearthetotalfinancialoutlayforbuilding
andoperatingthatinfrastructure .Suchasystemofchargeswouldhelpto
selectamongstalternative investmentproposals,butitwouldcarrytherisk
ofleadingtolevelsofchargesmuchhigherthanmarginalsocialcostsand
thereforeofdiscouraging demand.
./•

-22-
Ontheother hand ,averaging outorequalizing charges over awide
area would notallow specific investment to "beinfluenced .Atthesame time ,
however ,itwould nothinder optimum useofexisting capacity .
72. Theneed istoarrive at .abalanced solution forthis problems which .
applies particularly toinland waterways ,andinwhich possible regional
implications should notbeforgotten .ACommission document (l)dealing with
this subject reproduced inanappendix some ofthe ideas oftheauthors of
the "ALLAIS Report ". .
(l)Doc .SEC(72 )2822 ./•

-23-
P?rtIII
Conclusion
73-ThisInterimReportshowsthatsubstantial "butunevenprogresshas
beenmadeinthecomplexfieldofInfrastructure Charging.Forinstance,
asfarasthedetermination ofmarginalsocialcostsisconcerned,muchmore
isknownaboutthemarginalcostofusingroads,particularly forcommercial
vehiclesoperatingoutoftown,thanforrailorinlandwaterways.Agood
beginninghasbeenmadeindealingwithcongestioncosts,enoughisknown
aboutnoiseandairpollutiontoencouragefurtheranalysisofavailable
information ,andthecostofaccidentsmaybetackledwithsomeconfidence.
74.Agoodstarthasbeenmadeonasssmblingandexploitingthebasic
nationaldatarelatingtoexpenditure onandtheuseofinfrastructures ;
thesenowneedtobeadaptedtotheneedofamodernInfrastructure Charging
system.
75*In'thefieldofallocatingandchargingcosttousersmuchworkremains
tobedone,includingboththerationaleandthemethods.Nevertheless
progressoncommercialroadvehicleshasshowntheway,andasastartfor
futurework,availableresearchmaterialonsuchaspectsasbudgetary
equilibrium chargeswillneedtobeprocessedandputtouse.
76.Suchresultsshowinwhichdirectionsitshouldbepossibletoadvance
fairlyquicklyandwhere,onthecontrary,seriousdifficulties remainwhich
maycallfornewapproachesbothastoaimsandmethods.Thesewillbethe
subjectofasecondpaper (whichwillanalyseoutstanding problemsinthe
lightofdevelopments sincetheoriginalproposalsonInfrastructure Charging
weresubmitted.Itisalsointendedtoindicateinthatpaperpossible
priorities andlinesofactiontodealwithpresentandpossiblefuture
problems.

.-2d-
77•Inthelightofwhathas"beensaidthereisnodoubtthatthesubject
ofInfrastructure Chargingoontinuestoarousethegreatestpossibleinterest
bothingovernmentandtheworldoftransport.Suchindicationsofits
importancebothintrinsically andinrelationtootherelementsofthe
Community *stransportpolicyareconvincingevidenceoftheneedtomake
furtherurgentprogress. '

Annex I
Draft Council Decision onInfrastructure Charging

EXPLANATORY MMORANBtTM
In-theagreementof22June19°5ontheorganization ofthetransport
markettheCouncilincludedamongmeasuresforapproximating theconditions
governingtheoperationofthevariousmarketstheadoptionofacommon
solutiontotheproblemsofohargingfortheuseoftransportinfrastructure .
InordertoattainthisobjectivetheCommissionpresentedtotheCouncil
on29March1971aproposalforadecisionontheintroduction ofacommon
1-systemofchargingfortheuseoftransportinfrastructure • i
Thisdecisiondefinesthegeneralprinciplesofthesystemchosentwhichisr
basedonchargingforthemarginalsocialcostwhileAtthesametime
requiringrevenuetocoverexpenditure ;onlybythismethodisitpossible
toensurethebestuseofinfrastructures andatthesametimetoobtain
sufficientrevenuetofinancealltheexpenditureincurredbythecreation
andoperationoftheseinfrastructures .Inthiswayafoundationwillbe
createdforlatermeasuresdesignedtoimplementthepolicychosenforthe
threemodesoftransport,thecontent"andstructureofwhicharesetoutin
thememorandumfromtheCommissiontotheCouncilonchargingfortheuse
ofinfrastructure • '
TheEuropeanParliamentexpresseditsOpiniononthisproposalatits
2' 'meetingon16November1973*andtheEconomicandSocialCommitteeon
28September1972^.
AfterexaminingcarefullythecommentsmadeintheseOpinions,theCommission
hasdecidedtoactuponsomeofthemandforthispurposetoamend,in
accordancewithArticle149»paragraph2oftheTreaty,theinitialproposal
foradecision.
-■ 'V .V-'';./•
OJNoC62,22June1971»P»15*
^OJNoC108,10December1973»p»67»
^OJNoC123,27November1972,p.11.

Theseamendmentsrelatemainlytothefollowingmatters:
Recital 1
Thelimitationoftheproposedmeasuretorailway,roadandinland
.navigationinfrastructures has"beenconsideredadvisablehavingregardto
thefactthattheCouncilhashotyetdecidedonthe"basisofArticle84(2)
toapplytherulesofacommontransportpolicy,toeeaandairtraffic.
TheEuropeanParliamentdesires,however,theintroductionofaRecital1(a)
layingdownthatthestructureofthesystemofchargesmust"bedevisedwith
aviewtoitslaterapplicationtootherformsoftransport ,"sothattheir
inclusionthereinwillnotnecessitate anymajoramendments.
1- . .. .i
Recital3 ..
TheEuropeanParliamentproposesthattothenotionof,rbestuseofexisting
infrastructures ",whichinitsOpinionistooconcise,therebeaddeda
supplementary notion,namely,thepromotionofadistribution oftransport <
betweenthevariousmeansandinfrastructures whichwillbeadvantageous
totheeconomyasawhole.
Thesecondaim,whichistomakeusersbearthetotalexpenditurenecessary
toensurethecreationandoperationofthemeansofcommunication ,is ,<
supplemented byadefinitionofthegoal'pursued,whiohistoensurea'..
volumeofinvestmentintransportinfrastructure advantageous totheeconomy
asawhole. ,".>
Article2.pc.raPTaph 1
AswiththefirstRecital,theEuropeanParliamentproposesaddingtothe
phrase"topromotethebestpossibleuseoftheinfrastructures "aformof
wordswhichsetsoutmoreclearlytheaimpursuedbytheproposalfora
decision. ,

Article2,paragraph 2
ThisparagraphprovidesthattheCouncilistoadoptrulesforcalculating
themarginalsocialcostsandtheequalizingcharges.Sincetheserules
areessentialtoensurethefairoperationofthewholeofthesystem,the
EuropeanFarliamentaskstobeconsulted "beforetheyarefixed.Although
theEconomicandSocialCommitteehasnotmadearequesttothiseffectj*
itisproposedtoconsultitalsointhesameconditions.
Article5
Thisarticlestatesthatifthesystemofchargingfortheuseofinfrast­
ructureistofunctionsatisfactorily ,independentoperatingbodiesmustbe
setup,providedwithallthenecessarypowerstoensurethatinfrastructure
ismanagedinconformitywiththoobjectivesandprinciplesoftheafbr6said ,
system,andthateachofthesebodiesberesponsibleforsettingitscharges
onthebasisofthecostanduseoftheinfrastructure underitscontrol.
TheEuropeanParliamentrequeststhatanadditionbemadetothewordingof
thisarticleinordertoensurethattheprinciplesofmarginalsocialcpst
andbalancedbudgetsa.reappliedtotheseparticularcases,too.,■
Article6,paragraph 1 .
Paragraph 1ofthisArticledefinesthemeansbywhichthesystemof
chargingfortheuseofinfrastructure istobeimplemented .Itprovides
thatchargesfortheuseofinlandwaterwaysbelimitedtonavigationdues.
TheEuropeanParliamentrequeststhatthepossibilityofimposingtaxeson
shipsbealsoleftopen.
Article7,paragraph ■]
ThisArticlestatesthatinviewofitscomplexity,thelargenumberof
implementing measuresrequiredandthewide-ranging economicandfinancial
effects,asystemofchargingfortheuseofinfrastructure Canbeestablished
onlybystages.TheCommissionconsidersthattheproblemsarisinghereare

fargreaterforinlandwaterwaysthanforroads,andhasthereforeallowed
anadditionalperiodoffiveyearsforcompletingtheestablishment ofa
chargingsysteminthissector.TheEuropeanParliamentconsidersthatthe
provisionoftwodifferenttransitionperiodsforthesetwomodesof
transportwillbeliabletocreatecertaindistortions ofcompetition both
betweenthetwomodesoftransportandbetweenthemandtherailways.As
competition doesinfactexistbetweenthesethreemodesoftransporton
certainlinks,thereisariskofseriouslycomplicating thecalculationof
compensating grantsenvisagedfortherailwaysinparagraph4ofthis
article,andevenofhandicapping roadtransport,forwhichnocompensating
grantisproposed.Parliamentthereforeproposesasingletransition
periodof15yearsforboththemodesoftransport.
Article7<paragraph 4
Thisparagraphmakesprovisionforthepaymentofcompensating grantsto
railwaysduringtheperiodofestablishment ofthechargingsystem,in
ordertooffsetthehandicapwhichtheyvailsufferaslongastheirroad
and-waterwaycompetitorsarenotbearingthewholeburdenoftheinfrast­
ructurecostsattributable tothem.TheEuropeanParliamentproposesto
supplementthisparagraphinordertoensurethatthesecompensating grants
aredeductedfromthesubsidieswhichvariousMemberStatesgranttorail­
ways.
Otheramendments ofaneditorialoharacterhavealsobeenmadetothe
proposalforadecisioninquestion.

5
Amendmenttotheproposalfora.decision
ontheintroduction ofacommonsystemofcharging
•fortheuseoftransportinfrastructure
ThoproposalforadecisionoftheCouncilpresentedbytheCommissionon
29March1971isamendedasfollows:
-"byanamendmenttothefirstreoitalandtheintroduction ofanew
recitalafterthefirstrecital,
-byanamendmenttothethirdrecital,
-byanamendmenttoArticle7,
-byanamendmenttoArticle2(l),i^b»parcgrGph 1
-byanamendmenttoArticle2(2),
-byanamendmenttoArticle5»
, ;-bytwoamendmentstoArticle6(1),firstandsecondindents,
-byanamendmenttoArticle70)isub-patfasra!P^1 '■<
-byanamendmenttoArticle7(4)j• ;:
-andalsobycertainpurelyeditorialamendments.
TheseamendmentsareindicatedintheafciaohGdcUxmnont

-6-
Originaltext––Tjnere.i■■nimiw–i'■■«wAmendedtext
THECOUNCILOPTHEEUROPEAN
COIi"UNITIES,
HavingregardtotheTreatyestab­
lishingtheEuropeanEconomic
Communityandinparticularits
Article75?
Havingregardtotheproposalfrom
theCommission ;
HavingregardtotheOpinionofthe
EuropeanParliament ;
HavingregardtotheOpinionofthe
EconomicandSocialCommittee :THECOUNCILOPTHEEUROPEAN
COMMUNITIES .
Nochange
Whereastheintroduction ofaoommonWhereastheintroduction ofacommon
transportpolicyentailstheestab-,transportpolicyentailstheestablish-
lishmentofacommonsystemofmentofacommonsystemofcharging
chargingfortheuseofinfrastructure ;fortheuseofinfrastructure ;
whereassuchasystemmustapplytowhereassuchasystemmustapply
rail,roadandinlandwaterwayinfra-initiallytorail,roadandinland
structureinsuchawayastoensurewaterwayinfrastructure insuchaway
fairconditionsofcompetitioninastoensurefairconditionsof
transport; competitionintransport;
Whereasthissystemmustbeestablished
insuchawaythatitcaninduecourse
takeintheothermodesoftransport,or
sothatitsprinciplesarecapableof
beingappliedtotheseothermodesof
,transport,bearinginmindtheirparticular
features :

Origin -,!'tex t' Amended text
Whereas theintroduction ofasystem Hochange
• · >
ofcharging fortheuseofmfrastruc - .
ture requires alarge number of
measures which can "beadopted and ' >
implemented only "bystages ;'whereas , ,
however ,inorder tofacilitate the
preparation ofimplementing measures
and topromote coordination ofnational
policies ,theguidelines andgeneral
principles forsuch asystem should ■
helaid down now ; ,
Whereas thesystem ofcharging must Whereas thesystem ofcharging must
satisfy thedual aimofpromoting thesatisfy thedual aimofpromoting a
best useofexisting infrastructure distribution oftransport among the
andofensuring that allexpenditure different means andinfrastructures '
necessary fortheconstruction and which will beadvantageous totha
operation ofthelines ofcommunica -economy asawhole ,andofensuring
tion isborne bythousers thereof ;that allexpenditure necessary for
whereas thi3 objective will be theconstruction andoperatioi..of the
attained ifthecharges forvarious lines ofcommunication isborne by
categories oftraffic arefixed theusers thereof ,thus ensuring a
according totherelevant marginal volume ofinvestment intransport '
social cost ,xvith theaddition ,where infrastructure which will boadvantage -
necessary ,ofanamount sufficient tooustothoeconomy asawhole ; ,whereas
ensure that thetotal expenditure inthis dual aimwill beattained ifthe
respect oftheinfrastructure in charges for "thevarices oa^ogorioa of
question iscovered bytherevenue traffic arefixed according tothe •
from theusethereof ; relevant marginal social cost .,,with
theaddition where necessary ofan
amount ("equalizing charge ")sufficient
toensure that thototal' expenditure in
respect oftheinfrastructure inques-
- •■ tion iscovered bytherevenue from the
'1 ■usethereof ;
· · I- ' ' '
whereas inorder toensure that Whereas inorder toensure that
existing capacity isputtooptimum existing capacity isputtooptimum

ΡΤ8«τ
Originalto':t
use,itisdesirable -thatasfaras
possiblethechargesapplicableto
thevariouscategoriesoftrafficbe
adjustedtotakeaccountofvaria­
tionsinthemarginalsocialcosts
relatingtothosec-atcgories ;/mendedtext
\
use,itisdesirablethatasfaras
possiblethechargesapplicableto
thevariouscategoriesoftraffiobe
adjustedtotakeaccountof(twowords
themarginalsocialooots
relatingtothosecategories ;
WhereasthemeansshouldbedefinedNochange
-wherebytheaystemofchargingfor
thouseofroadandinlandwaterway
infrastructi5.ro istobeimplemented ;
whereas,asregardsprivatecars,the
possibility ofimposinganadditional
chargeshouldbeallowedfor,the
ievelofs\ichchargetobefixed
havingregard,in.additiontobudget~
aryrequirements ,tova.rioussocial
andotherconsiderations ;
WhereasitisnecessarytofixnowITochange'
thedurationoftheperiodduring
whichthecommonsystemofcharging
fortheuseofroodandinlandwater­
wayinfrastructureistobegradually
established ,accountbeingtakenof
theeffectoftheproposedmeasures •
oncompetition betweenmodesoftrans­
port;v.liereas,however,provision *
shouldbemadetoenabletheprogramme '•
a.ndtimetabletobedrawlupbythe <
Councilforthispurposetobeamended
asnecessaryinaccordancewiththo
resultsobtained ;
VJhereas,inordertocreatefaircon-Whereas,inordertocreatefaircon­
ditionsofcompetition betweenmodesditionsofcompetition betweenmodes
oftransportasfromtheperiodwhileoftransportduringtheperiodwhile
thocommonsystemisbeingestablished,thecommonsystemisbeingestablished,

9
Original text Amended tcact
itisnecessary tomake provision foritd,snecessary tomake provision for
payment ofcompensating grants ,to ' .payment ofcompensating grants during
railway undertakings where the ,expend-this period torailway undertakings
iture onroad andinland waterway ;where theexpenditure ;onroad and )
infrastructure isnotborne infull inland waterway infrastructure isnot
bythousers ofthat infrastructure : "borne infull ."bytheusers ofthat
infrastructure ;
Whereas thepossibility cannot be Woch&ngo
excluded ofserious economio and
t « '
social difficulties occurring in
particular sectors oftheeconomy of
,aMember State following implementa­
tion ofthosystem ofcharging fortho
useofinfrastructure ;whereas itis
necessary to .provide fortemporary
derogations from thocommon provisions
todeal with such difficulties and to
define theprocedure forauthorizing
such derogations ; ."

-10-
Originaltext Amendedtext
HASADOPTEDTHISDECISION: HASADOPTEDTHISDECISIONt
{■\ <
"'Article 1' Article1
'W
Thereshall,bointroducedwithinthe-■Thereshallbeintroducedidthinthe.
Community,inthemannerandwithinCommunity,inthemannerandwithin
thetimelimitslaiddownin'this -thetimelimitslaiddowninthis
Decision,acommonsystemofchargingDecision,acommonsystemofcharging
fortheuseofinfrastructure forthefortheuse-ofintrastructure for*the
purposesoftransportbyrail,road,purposesoftransportbyrail,road
andinlandwaterway.-, andinlandwaterway.
Thissystemshallbesodesignedasto
becapableofbeingextended,indue
.courseto-thoothernodo.5oftransport.
Article2 "Article2
1.Ihoaimofsuchasystemof ■l*ala0?'ro6ha'chM^oh£dl
chargingshall*.topromotethehost*">*»sufficientrevenuetoooxrarall
possibleuseofinfrastructure,while frorafto*™*™
,. .. .andattributable tothetransportfunctiongeneratingsufficientrevenuetocover -.
allexpenditureonsuchinfrastructure -"hereof,■, .
attributabletoitstransportfunctLai.Atthesametime,thesystemof
chargingmustpromoteanevendistribu­
tionoftraffiobetweenthe'various
.ί
infrastructures andavolumeofinvest­
mentintransportinfrastructure
advantageous totheeconomyasawhole.
Tothisend,thechargesapplicable Tothisend,thechargesapplicableto
tothevariouscategoriesoftraffiothevariouscategoriesoftraffic .must
mustbeequaltothemarginalsocialbeequaltothemarginalsocialcost
costoftheuspofinfrastructure byoftheuseofinfrastructure bythose
thosecategories.Shouldtherevenueoategori,es.Shouldt&arevenueproduoed
producedbysuchchargesbelessthanbysuohchargesbelessthanthetotal

11-
Originaltext Amendedtext
thecorresponding expenditure,there-e33>on&5iaroonthe
shallheaddedtothemarginalsocialinfrastructures concerned,thereshall
costanequalisingcharge,theamountheaddedtothemarginalsooialcost
ofwhichshall "besuchastoensureanequalizingcharge,theamountof
thatthesaidexpenditureiscovered,whichshallhesuchastoensurethat
thesaidexpenditureiscovered.
2.TheCouncil,acting "bya 2.TheCouncil,actingbyaqualified
qualifiedmajorityonaproposalfrommajorityonaproposalfromthe
theCommission,shalllaydownrulesCommission .andcftor^theP©rlianent~and"the
forcalculatingthemarginalsocialEoonomiomdhSooifal CcoSiJL<iftea*1~b<5021
costsandtheequalizingcharges.©onsoltedshalllaydorm-roles-for
/ oaloulatisJSmarginal*sooialoofftsand
equalizingcharges.
Article3 ■Article3
TheexpenditurewithinthemeaningofNochange ,–
Article2(l)tobecoveredovera
specifiedporiodbytherevenuearis- _
ingduringthatperiodshallcomprise
thefollowingexpenditureincurred <
duringthatperiod:
-investmentexpenditure (expenditure .
mrespectofConstruction ,recon-. ', •
structionandreplacements of
installations);.
-currentexpenditure (expenditureon .•'
themaintenance andoperationof
.suchinstallations and.onadminist­
rativeservices).
WhereinvestmentexpenditureisWhereinvestmentexpenditureis
financedbyborrowing,therevenuefinancedpartlyorwhollybyborrowing,
raisedbychargingmust,overaspeci-therevenueraisedbychargingmust,
fiedperiod,beequaltothesumofoveraspecifiedperiod,beequalto
thefollowingtwoitems: thesumofthefollowingtwoitems:<*...•.„
Originaltext
/•

Ori^dnil text Amended ,text
-expenditure incurred during the Noohange
period inquestion notepvered by
borro'.anj ;
-repayments andinterest charges
attributable totheperiod inques­
tion inrespeot ofloans contracted
earlier tofinance investment
expenditure .
Article 4 Article 4
Thescale ofcharges fortheuseof Nochange
infrastructure shall differentiate to
theutmost between categories of
traffic having different Eargfoial -social
coats .
Within each category oftraffio
separate charges shall beapplied .■ .
vherever this is'Justified byvaria­
tions oftime andplace intheuse of
infrastructure andispossible ,having
regard tothecost ofcollection ,with
the moans availablo .
Article 5
Separate charges fortheuseof
infrastructure shall bofixed in
respect ofengineering works ,routes
ornetworks operated a3separate
entities .Article 5
Separate charges fortheuseof
infrastructure shall befixed in
respect ofengineering works ,routes
ornetworks operated asseparate
entities . . • ••
These charges shall bebased onthe
principles laid down' ihArtiolea 2t3
and4»

Original text
Article 6
1.Thesystem ofcharging fortheuse
ofinfrastructure shall beimple­
mented bythofollowing means :
–inreapcct ofroads ,bymeans of
vehicle taxes ,fuel taxes and
measures fordirect charging ;
-inrespect ofwaterways ,bymeans
ofnavigation dues .Amended text
Article 6
1.Thesytcm ofcharging fortheus©
ofintrastructure shall beimple­
mented bythefollowing means :
–forthe^use ofroads ,bymeans of
vehicle taxes ,fuel taxes and
measures fordirect charging ;
-forthoUNO ofinland waterways ,
bymeans ofnavigation dues ,and
where appropriate ,taxes onVessels
2.Theuseofvehicle taxes andfuel Nochange .
taxes asmeans ofcharging forthe
use ofinfrastructure shall not
prevent theimposition ,inparticular
tomeet taxation requirements ,of
additional charges onownership of
private vehicles oronconsumption
offuel used bysuch vehicles .
Article 7 Article 7
1.Thesvstem ofcharging forthouso 1.Thesystem ofcharging forthe
ofinfrastructure shall beestablished useofinfrastructure shall be 1
bystages .Stibject toanyextensions established bystages .Subject *
authorized bytheCouncil under toanyextensions decided bythe
paragraph 3hereof ,establishment of Council under paragraph 3hereof ,
thesystem shall becompleted bynot establishment ofthesystem shall
later than 31December 1981 in becompleted notlater than fifteen
respect ofroads andby31December year safter ^theentry .into ,force of
1986 inrespect ofwaterways . thepresent (Decision .

-14-
Originaltext Amendedtext
Thetimetableofthe'stagesaridtheWochange
measurestobetakenduringeaohof
theseshallbelaiddownbythe
Councilonaproposalfromthe ..
Commission .
2.Ifduring-theperiodof Nochange
establishment ofthechargingsystem •'''
theapplication ofmeasures
prescribedforanystfgegivesrise
toseriouseconomicorsocial
difficulties inanysectorofthe
ecoEony,the-Cojntnjssionmay,atthe ,
i'
r&^j.ovjtofaKeub-jrStateandafter ••
consultingtheotherMemberStates,' .. •
authorize,foralimitedperiod, 1
derogations fromthesemeasures. ,
Disturbances causedbysuch
derogationstotheestablishment of
thesystemnmstbekepttoaminimum,
andthederogations mustnotgo i ■
beyondwhatisstrictlyessentialto
renedythedifficulties foundtohave
arisen.
3.Beforetheendofeachstagethe3*Injjoodtimebeforetheendof'
Commissionshallpresenttothoeachstage,theCommissionshall
CouncilareportontheresultsofpresenttotheCounoilareporton
themeasuresappliedd'tringthattheresults ethetime-•'
stage.Inparticular,thereportfdietttherep^i
shellrecordanyderogationsgrantedthemeasuresappliedduringthat
underparagraph2andshallifstage.Inparticular ,thereport
necessarybeaccompanied byproposalsshallrecordanyderogationsgranted
toextendthedurationofthestageunderparagraph2endshallif
inquestionortoamendthemeasuresnecessaryinoludeproposalstoextend
tobeimplementedduringthefollowingthedurationofthestageinquestion
stage. ortoamendthemeasurestobe
implementedduringthefollowingstage

Originaltext
4.Duringtheperiodofestablishment
ofthechargingsystem,compensating
grantscalculatedinaccordancewith
commonrulestobelaiddown"bythe
Councilonaproposalfromthe
Commissionshallbepaidtothe
railwayundertakings inorderto
offsetthefactthattheexpenditure
onroadandwaterwayinfrastructure
isnotborneinfullbytheusers
thereof.Amendedtext
4.Duringtheperiodofestablishment
ofthechargingsystem,compensating
grantscalculatedinaccordancewith
commonrulestobelaiddownbythe
Councilonaproposalfromthe
Commissionshallbepaidtothe
railwayundertakings inorderto
offsetthefactthatexpenditure
onroadandwaterwayinfrastructure
isnotborneinfullbytheusors
thereof.Thesecompensatinggrants
shallbe^deductedfromthejpublic
subsidiesgrantedintheMember
States.
Article8
ThisDecisionisaddressedtothe
MemberStates.Article8
Hochange

»
* ;
'
I
J
IVMLQX II
/l^pi'ouoiies tour'uavi con^e^ioa o J.cler;ninaiion

Introduction .A ..i ,...
1..Inlookingatasystemofchargingfortheuseofinfrastructures ,,
(T.TJ.I,),urbantrafficcongestionismuchmoreimportantthanoo.ngostion
occurringoutsidebuilt-upareca.Moreoveramongstthevariouscorts
associatedwithurbancongestion,timoloutiamostprobablythemopt^Importtci
aspect.
TokeepmatLernsimplea:idtoallowfasterprogresn,thispaperwill
oonoentrate onmeasuringthecostoftimelostduetourbancongestion.
' " ^i •'
2.Iiidealingwiththemeasurementcftimelossesduotourbanoongestion
andwiththoirvalue,thepaperdojorjofromthomcir^insJ.oo.ikviewpoint
whichrepresentsthsbe^'icideainT.J.I.Inordertohaveasingleunit
foralltypes'ofinfrastructure costs,marginaloostsareexpressedper..y
vehicle-kilometre .
■,f\
»!·''· 1 ·'·· "'V'
3.Theconclusionsinthispapersrobasodonpr3vi-ouoworkAcnebythe
UrbanStudiesSub-Grouponproblemsinvolvedinmeasuringspeed-flow/r...
relationships (doc.C/C2tj/02~70),theGiuntireportstemmingfromtheSub-f
Group'sconclusions(doc.C/CJtJ/l4-70)er.dthoUrbanStudiesSub-OrouT >onthe.
valueoftime(aoc.'C/GECJ/i3-70)?aswellasthediscussionsonthostudios
carriedoutinthecitiesofBruxeller,,Cologne,LyonandVerona.*
Basicconooptsanc*.â^fim+ions'
4«Marginalcostsofcongestionareroallythosecostswhichare .
inourrodbytraffic.inadefinedarea(asinglestretch ■
ofroadora"zone")at*aresultoftheadditiontoexistingtrafficofan
extravehicle.Hcwovor,forthep-orposaofcostdeterminationitissimpler
torestrictmarginalcongestionooststothoseincurredbytheothervohicJ.es
asaresultofaddingonevehicle,andthus'to'ignorethewrsracostincurred
bythatmarginalvehicleitself.

5.Inordertoascertainthesemarginalcosts,boththequantity(in
hours)andthovalueoftime(inmenayperhour)mustknown.Thesefactors
arauaaltwithinmoredetail'iiifcoparagraphsthatfollow,"bothasrogarda
baaieformula©andvariousmethodsofmeasurementappropriatetodifferent
circumstances .
6.(a)Thototaltime(inhours)spentlaytrafficinadefinedarea
resultsfromknowingt
-thelsr.gthoftheroadorextentofthearea(tats)
-theaveragespeed(kmperhr)
-theflow(i.e.numberofvehiclesperhour).
t
/ - »
• .' I
(b)Themarginalchangeinthistotaltimeduetotheintroduction
ofc.iextravehicleisobtainedbythomathematical processofdifferontiation
(e.g.bymeasuringtherateofchangeinspeedasagainstflow).
(c)Intraffioconditionsbeforesaturationpointisreaohed,i.e.:
whorostopandgotraffiohaonotyetstarted,allobservations chowthatas
thovolumeoftrafficincreases,thespeeddrops.Since'suchaphenomenon
canbestbeexpressedinmathematical orstatisticaltens,theattached
appendixshowshowtheformulaearederivedfromtheoi'iginalrelationships .
(d)Theappendixshowsthat:''' '-
overactretohof1km,themarginalextratimespentbyother
•* -, • •'■*traffioperextravehicleadded,i.e.themarginaltiiaeloss""
£-»'■ s■' ■'■■:
; ..' .v>.•■dq......,v
whereq«•flow
,v»averegeopeod _ .*'.
andv;–»theratecfchangeinspeedwithrespeottoflow.aq.. -....... ,..
« ••i■■\.:.•
(e)Thisapproaohisonewellknownmethodofmeasuringtimeloss;others
withsimilarmathematical backgrounds ,butoonoentrat^ng ondifferenttraffio
variablesmayalsobeapplied(seeparas9-13).'

7. Having developed on3ormore satisfactory formulae for ,measuring ...
themarginal lo?3oftime ,thequeation maybafunked whether each vehiole
ha3 "thesarce effect ,orwhofeer large andoftori slower commercial vehicles ,
cause more congestion than sayprivate cars .This isthe revest ionofvehicle
equiveAence coefficients (seepara .14below ), , ,
8. Having dealt with themeasurement oftime ,thefollowing elements
must betaken into account when assessing itsvalue pervehicle /kms
(a)thevalue oftime foraroad user (monetary value perhour )
,CvJ)thenumbor.of users pervehiole (degree ofoccupancy ).. ,
Thase exemends aredealt with ingreater detail inparas 15to .20..^ ... ..
TiH^p:e?.v .urem'''ni :oftjmelesses
V ' *
9« Tiestudios carried out ,onBrussels ,Cologne ,Lyon andVerona .nave <
shovii that there isnouniversally praotical method formeasuring time losses *
Itmaywell bethat different methods aremost useful indifferent local
circumstances andconditions ecpeci&Ily vhera 'congestion .i,3measured on"links *1
i.e.single road stretches ,or"zones "i.e.homogeneous areas each with own ,
particular characteristics .Thefollowing paras therefore deal inorder with
methods based on : , -, .- \
(a).'£?peed~flov J...c ■■%•»:' " •f'"■.
•(b)upeed .-density : ; ,i•>* ';;'v.I.. ,••» y/•**•iIr■■■■.
L(c)aone "6raffio performance <■;t-*±.'U+i \ '•r
(d)'intersection delay .,";;s>i.v\.rr?^vxini\. ,.}>
i•? .r ■ ''t ■-' «1.1 ' 7 ••'f:' »•
10. Speed-flow relationships maybeseen ashaving .twodistinct aspects ;
via .: '
' stable flow .1-'t ,• 4 r.J•••:,?
-unstable flow ,
which areillustratedhytheform ofatypical speed-flow ourve asshovn in
theGiunti report (c/G2U/l4-70 ).Theupper part ofthecurve representing
stable flow ,indicates thesteady doorease inspeed inrelation toinoroasing

trafficvolumesuptothesaturatiohpointatwhichunstableflow ■commotiocs:
Asonewouldexpecttimelostinapositivequantityuptothesaturation
point. "
AsconcludedinthoGiuntireportonlytheupperpartofthespeed-
flo-;CTirveshouldtherefore "beusedasthevaluesdeterminedfromthispart
arereliable,andmeaningfultimelossesoanbecalculated.;t''
Anunstable .flewsituationdevelopsbeyondthepointofsaturation
i.e.whonspeedendflowdecreaseerratically pudcanthereforenotbed'jalt
withsatisfactorily byspoad-flow ,relationships .Thesaphenomenaaredealt
withinthenextparaonspeed-density ..
11.Trafficdensitymaybedefinedasthenumberofvehiclesoccupying
aunitlengthofroadatanygivo:ainstant;itisusuallycrpresnedas
vehicles .porkilometre.Itmaybemoreconvenientinsomainstancestouse
nvera^qdonaixywhichiothoaveragenumberofvehiclesperunifclengthpf:
roadeveracpooifiedperiodoftime,e.g.theaverageconcentration of
vehiclesperkilometreduringanhour.'•
ιTrafficspeeddecreasessteadilywithincreasingdensitythroughout
/
thespeodrange.Patanoch^rwaydensitycontinuestoincreaseatand'
beyondtheflowsaturationpointandisthendetectedbytheuseras-?r.
increasedrateofqueuing.Itthereforeappearsthat,speed-density relationships
remainreasonablystableinuns+aV.leflowconditionsandtheyoouldtherefore
havesomeoveralladvantagesascomparedwithspeod-flowrelationships ,
whenconsideringheavilycongestedtrafficconditions.' .-
..+
Themathematical relationshipisalsodealtwithintheattached
appendix. 1 '

12.■Speed-flowand.speed-density ,ocnceptnasdescribedaboveare;';'v
particularlyusefulinlockingatsingleroadstretches^links).**
Adifferentconceptistodividetheurbanareaintoaseriesof
homogeneous zonesandtomeasuretheamountofvehicletravel-"beingperformed
inasokei.e.thezonetraffic"porfcraiane 3"definedasthenumberof;t
fcjlcnwtres "beingdriven "byvehiclesinthezoneduriivjspeoifiedtime,-•
This"performance"isreflectedto.thenumberofvehiclesinmotion.,
(non-parked)inthezoneduringthecamespeoifietf .timeandtheaverago
ovoralltravelspead "beingattainedinthezone.Byequatingthaoetwo
elements,&a'showninthoappendix,andmeasuringthezonetraffic^performance"
andthenunberofvehiclesinmotion(non-parked)-the,averageoverallzone
-travelspe*iucanbecalculated'...",,■,- ••», >r
fromthomathematical standpoint,theaverageoverallzor.etravel
speedisasimpledecliningfunctionofthetot&lnumberofvehiclesin
motion(non-parked)inthozone.Thus,agbefore,therateofchar.geof
,;... . >6Vspeedwithrespect ,tovehiclenumbers;^f~)isalwaysnegativeandthe<<
marginaltimelosspervehicleperkilometreisalwayspositive(seeappendix).
• . '' .
.17; '» 4 »
12.Thefourthapproachisbasod.onthepremisethatintersactiondelays
arothemainsourceoftrafficdelayinurbanareas..Congestionisa
functionof.thefrequencyofoccurrenceofheavily .loadedintersections .
1 v
VItwouldseemthatdifferentbanesmustbeusedfor,•«1'■
calculatingthedelaysatoverloadedintersections(wheirethereisa
continuousqueue)-andunderloadedintersectiona.Promthesefiguresthe
^tptalatidm&rftinaltime;lossesmaybedeterminedonanarea«widebasis.•s
Itishopedtopresentaseparatepapergivingamoredetailed
explanation'ox*thismethodatalater.-stage*., ur-.:;r.
., ,.'r .-.»• .VJ,,.; -•w''r 5-» ,J.f '■'/ .'. .'
Vchicleequivalene*•i "■,■.<:••.-•...
14*Inpara7thequestionwasraisedwhetherlargevehicleswould.;r
causesignificantly greatercongestioninthetrafficstreauthan,thesm?21er
kind.Ifso,anallowancecouldbemadebysubstitutingforeaohlarge

vehicle atheoretical number ofoars which itisectinated would have the •
same effect onthetraffic Btvean asthelarge vehiole . ' ' 1 .•
Atthelowspeeds usually enoounter-jd inheavily congested urban
traffio ,andhearing inraind thelowproportion atpscic times ofheavy
vehicles (except possibly buees),itsecm3 doubtful whether aheavy vehicle
contributes significantly mora tocongestion than acar .It-therefore
appears tobeacceptable toconsider allvehicles equal .Alternatively a
value of1forcara,small vans' aridlight trucks andavalue of2for ' '
heavy trucks andbuses haebeen suggested .This approach avoids theproblems
o'accurately andscientifically determining features such asdynnmio profiles ,
overall dimensions eta .inrelation tolowspeeds ,andseems justified onthe
basis ofsimplicity versus doubtful accuracy .
Thevaluation oftime looses ' . ,
15. Asregards thevalue oftlrr.a foreaoh vehicle user ,alitab-Group ofthe
Urban Studied Group examined various aspects oftime value in1970 .Amongst -'.
other tilings "uhey discussedt •;. .
-t'nefeasibility ofvaluing users time onalarge aoald
-theoompariror .ofgains andlosses
-thjdifferent user categories ' !
-thevaluation ofworking time ,cortimuting time andleisure time
-thedifferences invalue between morning andevening poeits and
other periods ,both onworking days andSaturdays andSundays
-thevaluation ofthetine ofco'mmeroial andpublio transport
vehicles and ,asregards thelatter ,theincrease inoycle tine .
'and theconsequent increase invehicle fleets required tomaintain
adefined level ofservice .- ■, 'i' '
16, TheSub~Group noted thelack ofresearch cnthese problems and •'
agreed that themost usor^ul contribution wasthe 1J?69 Sixth Round table on
Transport Econonics devoted tothevalue oftime sponsored by'theEuropeari '
Conference ofMinisters ofTransport .TheSub-Group -therefore made the
following recommendations *largely based on'thefindings oftheSound Table *

(i^marginalvaluemaversevO.ue
(ii)workingrate»rateofgro3Bearningplusemploymentta.xe3,social
welfarecontributions sto.plus10$to15$ofrate
ofgror-searningsforoverheadexpendon
(iii)comnutingtimo«25c/»ofworkingratein(ii)(-corningpeskonly)
(iv)othertime»commutingtiffi-sasstatedin(iii)
Th6questionofhowtoevaluatetheeveningpeaktrafficperiodwasnot
deoidod "bytheGroup.
17•Totaketheserecordendaticnsonestepfurtherand"bearinginmind
th-3u]tirr:a;.eneedforasimple .Kideffectiveapproach,itmaybeusefulto
co-nsi.lei'onlytv/cofthoabovecategoriesoftimei.e.workingandnon-
workir.gtime,theformervalueda.)in(ii)aboveandthelattarJit25$of
theworkingrate.Thiswouldleavethequestionofhowtodifferentiate in
practicebetweenworkingandncn-trorkingtime. i'
18.Xncertaincasesnationallye.gre-$dvaluesoftimear®available,
hswz'Xc.a*«haabj^erer^orung.Insoreeoasesthosevaluerareintenn3of"disposal..
income"i.j.grossearningsles?tarecandsocialcontributions .Wherethis
isthacoseaoomparisonofthemoJ'.etsryvaluer:islilcolytoshowclo3«?r
appro:cLme.ticastha-iacomparison Ofthobaoicconc?ppts-
vehioltrcoupancy
19'Finallyitisnjcenairytoknowonaveragethenumberofusersin
oacivehicle.Ithasbeenconsideredusefultoconcontr^.ie onprivatecrra
andtoignoreforpurposesofsimplification boththeocoupancycfbases
findtrafficduringholidayperiodsetc.Ifthisisborneinmind,an
averagerateforuriDaiiaroasattinesofsignificantcongestionappears
tolieintherangeof1.3to1.5oocupantepervehicle.

rax
''•»* ■Mathematical Relationship ^•»' v
•';·'·:· ■■·"·ν.:'ί- ·:··"ν..'-·ι,'ι*-ί·>,;ι'·
Introdiiotion ■.*"I'
1.The"basicapproachasmentioned ,inthemaintextis.thevaluation
oftimelost,i.e.more"specifically ,theproduct*ofthefollowingtwo
elements:
·'ν♦···.-.■«···:-ί·-·,-;-themarginallos3oftimepervehicleperkilometre
-thevaiueoftimepervehicle. . :
i■; .V...■ 'n:
oftim-?losses 'u
Spe^ö-flow • .,
·ι.■■ιη»■■««· * "ν' *♦..χ I'κ,.·ν'γ·♦«
2.Thetotaltimespent"byvehiclesinthetrafficsystemperhourmaybe
expressedas. , .:.'•.
>:■.,•,* jj.■.r i--rj•''s'r/.
'...'.........."(i ) i/""
«;Ì•«.••• .s*.. :•«„;r..*:>, ^ >■z
where1»lerghoftrafficsystem(b)"'"'''1--1•
V«averagespeedofvehicleflew(km/hr)''\**
.q»vehicleflowper-unitoftime(vehAr) ..
v':■>r;.
'Thofliaa"ginalchargeinthetotaltime(T)oauaedbythearrivalof.
oneadditionalvehicleinthesystemis* nj.f;:V*>
AT"!1,1•;dV..,.. .
dq*T"qdq" *'
V* . ; ;
•;?■«V}';'*?v.-i-I•-'•>
whichiscomposedoftwoelement^,vi^#*.^v:..
*timespentbyonoadditionalvehicleinthosystem
• i v .■ '
1(T'/''V' *■-""*'r'■*"■■■'"-'„–q-•.■additionaltimespentbytheothervefciol.esin-the
systemasaresultoftheai-rival ,ofoneadditional–'
vehiclei.e.themarginaltimelossforalltheother
»<vehicles'peradditionalvehicle. '

Ifavaxueofunityinassumedfor1,sayI1cm,thenthegeneralexpression
forthemarginaltimelossperadditionalvehicleperkilometreasafunotion
offlowis: ■(..
-■qc».V■- ,...\'Ito1«-~^ ..............(iii)
dqr .'." >
Thisformulamay"borearranged ,asfollowss
Tmq---.-y- .(iv)\
q
av ■..'. ■.i,
Ma.tM
lhefactorwidenresultsfromthisrearrangementisoonsidoredto"be
amorasir.oleindicator,i.e.ashorterrang?.ofvaluec,oftraffio "behaviour
onaparticularlinkthanthewiderangsofspecd/flcwvaluesv/ith.which
onoispresentedotherwisewhonconaideringheavilycongestedoonditions.
Itisinterestingtonotethatthetermisthereciprooaloftraffio.
density. ._ i
Specd-d.onsr.ty
3.•.Thetotalti/iespentb/vehiclesinthetraffiocyoteiame^y"be
exprenseaas-
m:1
v*n .(ν)
vrhere1.»lengthoftraffiosystem(ion)
V«averagespeedofvehicles(ksi/hr)
n<*numberofvehicles(veh/km)
Differentiating asbeforeinpara2,itcan.beshownthatthe
generalexpressionforthemarginaltimelossperadditionalvehicleper
kilometreasafunctionofdensityis.s'w
ïrn«•–– (vi)„2dû T v'
ν

/
-3-;
Zc^^pftrf orRancet ", > ••"
-j.
4. 'The total urban ar3a maybedivided into homogeneous zonoa ,each
with itsownparticular characteristics . ' ' a
The amourit ofvehicle travel inazone i.a .the zone traffic
"performance naybedefined asthe'number ofkilometres "being driven by
vohiclos in -tneacne during aspecified tine ,:sayvehicle-kilometres of "•»
zene travel perhour . ••••.l tiy.;-v\•»
' \
.- ■ . •v : •; ... •. '*• ..
Thezone traffic performance isconsidered toboequal totnenumber
ofvehicles inmotion (non-parked )inthecone multiplied ,laythe -average \v:\
overall ./sscsm travel speed .' . - '.* ""■-■ '■. !
É-." '■. .5 •'>'>'* •i"' ''
■■»The'relatijnship maybewritten -asr - '■>'. >'»'*'•1» :)
nV «P
P
ca
.'■·,ηor .v» (vii)··. /·,· ί.·.·η : ■: ■'··ι: ' ··/
where v-average overall zona travel speed (kra/hr)'. 1 h''
P.-zone traffic perfor»aa»oe (veh-km )^v-v ■* *. <v •
n■ -'number -ofvehicles inmotion ,inthe .zone during onehour *
•.•t">>•■»« '■\ :
Thapumoaa ofthis approach istoarrive .atavalue forthe
average overall 'zone trave 1speed ." '"'*'" 'V .v ;
Theaverage overall "'travel' spe /?d.inaparticular sons isaoiapl-o
declining function ofthetotal r.umb&r of-vehicles inmotion (non-jparked )
inthe zone . * < -
·;-*· .;Λ' ■*■··.>:·:'■ν
Th/itotal time spent byvehiolss inthezone tnaybeexpressed as
*-Y n (viii )
where k '«•average trip length fcrallvehicles (km)'
V»average overall zone travel epeed (km/hr) r-.«
n•number ofvehicles inmotion inthezone during onehour *

Differentiating asoaforeinpara2,itcan"boshewnthat'the
generalexpressionforthemarginaltinelossper.additionalvehide/kilomotre
asafunctionofaverageoverallzonetravelspeedis:. ...
m___nM.■' 'Tmza– . (ix)
Vdn
. -. •. -:•;.ri.-' '
•Theaverageoverallzone.travel-speedisasimpledecliningfunotion
ofthetotalnumber *ofvehiclesinmotion/in-thezone.Thus,therateof ■■
changeofspeedwithrespecttovehiolenumbers()■isalwaysnegative
o-adthemarginaltimelosspervshiolopurkilometreisalv/ayspositive.
Thevaluatior .oftir.elossea
5.Thsvalueoftimefactortoasusedtooonvertthemargins!time
lossesperadditionalvehicleperkilometrecalculated "bymeansoferjuationa
(iii),(vi)end(ix)consistsoftwoelements ,,theaveragenumberofusers
pervehicle(3.)andtheaveragevalueofuserstirna.
.1' '»
'Thusthemarginalcostoftir.eperadditionalvehioleperkilometre
ineaohcase"becomes: • ,
wherea«■averagevehicleoccupancy(persons/veil) :•
andh»averagevalveofuser'stime(monetaryvalueAir)
inthecaseofflow,
rr<37 f.' ■
Cjnqa–-i–.eJl ,»..(x)
νασ
whoreq■vehicle'flowperunittime(voh/hr)- ■.>
V«averagespeedofvehicleflow(km/hr) -'
. - 1
intheoaseofdensity, •' .v"
r*J$L-v •t-j\ ■■1Can"*- .ah )
:Vdu
wheren«»numbero;?vehiclesperunitlengthofroad(veh/lca)
Vmaverajospeedofvehicles.(km/hr)...

-5-
intheoa3eofzone"performance",
„naVCmz«––-.s.„2d:vCmz«–-ry*»•.ah............(xii)
v-
wheren»numberofvehiclesinmotioninazoneduringonehour
V«averageoverallzonetravelGpeed(km/hr).,

AnnexIII
Study ofnoise andairpollution
byurban traffic
(V.D.I. )
-Summary -

Itisgenerallyrecognizedtodaythattrafficproblemsinurbanareas
cannotbesolvedbyyetmorestreets,parkinggarages,carparksandother
suchfacilitiesforcontrolling andregulatingtraffic.Instead,itisthe
taskofthoseresponsiblefortrafficandtransportpolicytocontribute,
throughotherappropriate measures,toasgreatareductionaspossibleof
theconflictsthathavebecomeevidentbetweenthetrafficburdensoncity
centresandthelivingconditionsintheseareas.
Anessentialconditionforeffeotiveactionistheexistenceofaidsfor
decision-making v:hich,basedonananalysisofthecurrentsituation,quantify
theobservableeffects,revealpossibleimprovements andprovideageneral
ideaofthecostsinvolved.
Suchconsiderations haveinducedtile"CouncilofMinistersofthe
EuropeanCommunitiestoinitiateastudyofenvironmental nuisanceanddamage
causedbytrafficinurbanareas(noiseandexhaustgases).
Theresearchprojectwascommissioned bytheWestGermanMinisterfor
■Transportonconsultation withtheCommissionoftheEuropeanCommunities.
TheAssociationofGermanEngineersacceptedthetaskand,initsturn,
commissioned medicalJdoctors/engineersandeconomiststostudyindividual
aspectsofthoproblem.
Theaimofthisstudywastodevelopapracticable methodofestimating
themarginalcostsofenvironmental nuisancecausedbynoiseandexhaust
gasesemittedbytrafficinurbanareas.
Thereportcomprisesadetailedgeneralaccount(longversion),anda
shortversion,inwhichthemainresultarepresentedinconciseform.Both
versionsincludea'"GeneralSummary",xrhichcontainsanintroductiontothe
subjectandinformsthereaderofthecontentsandcompositionofthereport.

Thefollowingaspectswerestudiedinthesurvey(separatelyfornoise,
andairpollution)
' '-
-currentextentoftheenvironmental burden,
-psychological andphysiological effectsoftheenvironmental burden
-coststotheeconomyasawholeoftheenvironmental burdenandtheproportion
thereofaccountedforbymarginalcosts..
Thebasisforascertaining thecurrentextentoftheenvironmental burden
causedbybothnoiseandexhaustgaseswasprovidedbyamodelofatypical
largeEuropeantown.Themodeltownwascomposedof12characteristical "town
node;!buildingelements",whichcanberegardedasrepresentative oftheurban
constructionpatterninfiveselectedlargeEuropeantowns(Amsterdam,Brussels,
Oolcgne,XiyonsandVerona).Typicaltrafficdensitiesandtrafficcomposition
veradeterminedforeachofthesebasicelements.
II.
• »••**'•/*
PartIofthestudydealswiththenoiseburdencausedbytraffic ,in
urb:»nareas.Onthebasisof.theacoustiorelationship ,betweentrafficvolume,
urbanconstruction pattern,noisecreationandnpiseexpansionanddiffusion,,
thenoiseiiomissionstobeExpected ,attypicalpointsoftheurbanconstruction
patterncouldbedetermired.
Inthestudy,thecriteriausedfortrafficnoiseimmissions .arethe
energyequivalentcontiguousnoiselevelL,generallyemployedto.distinguish 'eq' "
ocurdsvrhosenoiselevelvarieswithtime,andthelevelL.,.corresponding to
isolaiedpeaks«
.x •- * i v..
TheLand!>-,levelvaluesvreredeterminedforcharacteristic points.eq .1 .r
onbuildingfacaders,alirtvy^atanopenwindow.Theactuallevelofthe._
immittednoisewitiiinthe.oullding.canbederivedfromtheexternallevel,
• s.
allowancebeingmadeforthereductionineoundlevelduetotheshielding
effectofthewindow. '

Theeffectsofnoiseonpeopledependontheleveloftheimraittednoise*
Theyextendfromimpairingperformanceparticularly whereattentiveness and
ahi^idegreeofconcentration isrequiredto-inespeciallyseriouscasos-
temporarymalfunctioning ofthehearingorgansandtonoisedeafness.
Sucheffectsonman'shealthandwell-beingcan"beavoidedbyobserving
immi33ionguidevalues,ortargetlevels,basedonthethresholdofperception
ofthenoiseeffects.
Suchguidevaluesatvariouslevelsaresuggestedinthestudyforthe
relevant"spheresofactivity"inurbanlivingspace.Inrespectofnuisance
causedbytrafficnoise,themain"spheresofactivity"tobeconsideredare
"dwelling","sleeping 41,"recreation","communication "and"mentalexertion".
Sincethestreetareaitselfformspartoftheurbanlivingspaceof
man(they&ytotheplaceofwork,shoppingexcursions,etc.),efforts
shouldalsobemadeheretoavoiddeleteriouseffectsbyobservingcertain
targetlevels.Guidevaluesforthispurposearealsogiveninthestudy.
Indeterminingthe,costs.fthenoiseburdentotheeconomyasawhole,
aswellastheproportionaccountedforbymarginalcosts,preventivecosts
..' '»..«*» s V
werechosen,sincethecurrentstateofscientificdevelopment doesnotpermit
directmonetaryquantification ofthedamagecausedbytrafficnoisewhich
affectsman'slevelofsatisfaction ,healthandlifeexpectancy.
Measuressuitableforavoidingburdensomenoiseimmissionscanbe
takendirectlyatthesourceofemission(activepreventivemeasures)oron
thenoisediffusionpathfromemissiontoimmission(passivepreventive
measures).

-4-
l
»• «•
Toprovideprotectionfromexcessnoiseintheimmediatevicinityof
thenoisesourceaswell(o.g.forpedestrians,car'occupnats,eto.)itseems
reasonabletotryoutfirstallfeasiblewaysandmeansofusingactive
measures.
···'■' . ' Γ *.
■■■Uiththisinmind,varioustechnicalsolutionsarepresentedinthe
study;atthesametimetheadditionalnetcapitalcostsofthese'measures
forrev;motorvehiclesaregiven,whichcanvaryaccordingtothekindof
TKiaTirecandthetypeofvehicle.
\
•.Ttprovedpossibletofixarepresentative averagevalueforalltypesof
vehiclesincludingstationwagons.Thereport,talcingintoconsider-
a>i;;r>O-e"noiserelevant"distancecoveredannually,givesthe,specificcoets
o*h.-'.v^scvindir.3i:lationmeasuresperpassengervehiclekmbyspreading
Sj-;Srs-Locpitaloutlayovertheservicelife.
». «• »
?'haexpertshavecalculated -that'theenergy-equivalent continuousnoise
canbereducedbyabout'"'3dB(A).'ifabouthdlfof-allpassengervehicles
axequippedwithnoisePifflingdevices.Thedemonstrated costsperpassenger
Vofcii-lrakmthereforerv.forbnlytotherelativelylouder/.partofthevehicles
inanygiventr-aiffl'o'stream}' ■'in-thestudy,it-is-considered •admissible
toTeg^dthisvalar*a*-uprao&ciilftg -the'"marginalcostvalueperpassenger
Vih.ielc}. ••'>•.;>',■■.■(i
TheETirginalccsiaforbracksof;aorothan3»5tpermissibletotal
•woi'SLiw-aredelermineJ.f.OT.thoseforpacsenge?vehiclesbymeansofweighting
f.-%c;oTu.
' -, • 1'/j■•^♦4 •
./•

-5-
....Withheavytraffic,thereductionsinnoiselevelthatcanheachieved
throughactivemeasuresareasarulequiteinadequatetoreachthemedically
desirabletargetlevelsinthe"bedrooms,,livingroomsandworkroomsof
:"buildingsthat"borderontrafficareas.Insuchcases,additionalpassive
protectivemeasuresagainstnoisearecalledfor.
Thestudyreferstovariousmethodsofaffordingpassiveprotection
againstnoiseandalsoshowstheireffectiveness .Itisdemonstratedthat
thebestnoisedampingeffectinbuildingscanbeachievedbyinstalling
specialsound-insulating windows.Since,inmanycases,theinstallationof
suchwindowsistheonlymeansofaffordingeffectiveprotectionagainst
• ι·
noise,theexpertsderivethecostsforpassiveprotectivemeasuresfr^m
noisereductionbymeansofspecialwindows.
Thetypeofwindowconstruction meededisdeterminedbythedifference
betweentheactualanddesirednoiselevel.Promthesumofthewindowsur­
faceareastobeprotectedineach"townmodelbuildingelement",theinvest­
mentoutlayforpassiveprotectivemeasurescanbecalculated,firstforthe
individualelementsandfinally,bysummation,forthemodeltownaswell.
TheECSurveyintowaysandmeansofreducingnoisealsorevealedthat,
inadditiontotechnicalvehicleimprovements andtheirassociatedcosts,
variousotherdeficiencies shouldbeeliminatedandloopholesinthelaw
closed.Thefollowingmeasuresseemtobeespeciallysuitable:
,-rtheintroduction ofasuitablemethodofnoisemeasurement toenablethe
•Technischetlberwachungsvereine (TechnicalInspectionAssociations)tocheck
theactualnoiseemissionofamotorvehicleontheoccasionofthetwo-
yeartest;
./

-6-
-supplementing existingregulationsfortheconstruction and.testingofinlet
andexhaustsilencerstopromotetheproductionofenvironmentally favourable
types;
-enlightening motoristsaboutdrivingbehaviourbenefittingtheenvironment }.
-establishing internationally agreeduniformlegislation ,particularly for
regulations onlicensingandtypeofconstruction ,togetherwithsimilar •
technicalinspectionproceduresinallcountries.
Suchcomplementary measurescanbetakenindependently oftheappropriate
activemeasures,andoftenhavetheadditionaladvantagethattheycanbe
introducedatrelativelyshortnoticeandcomparatively lowcost.
III.
PartIIofthestudydealswiththeexhaustgasburdencausedbytraffic
inurbanareas.Theenvironmental burdenfromexhaustgasemissionisaffected
by,ontheonehand,trafficcharacteristics (e.g.trafficdensity,average '■
speed)and,ontheother,byvehiclefactors(e.g.engine,functioning ,fuel
chargemixing).Inthecourseofthestudy,theaverageemissionvalues
ofmotorvehicleswereempirically determinedthroughsimulationofthe
drivingconditionsobservedincitytrafficonatestingcircuit.
Emissionsneedtobesetagainsttheirenvironmental effects,i.e.immis-
sions.Forthispurpose,imirissionsoftheexhaustgascomponentcarbonmonoxide,
whichservedasaguidecomponent,weremeasuredirttheurbanareaofCologne.
Thechoiceofstreetsforthemeasurements wasguidedbythe'"townmodelbuilding
elements"developed'forthisstudy. -•

-7-
Onthe"basisofthesemeasurements ,dailycurvesweredrawnforthe
carbonmonoxideconcentration atthedifferentmeasuringpoints,fromwhich
half–hourand24hourmeanvaluesoftheCOconcentration ateachmeasuring
pointoneachdayofmeasurementcould"becalculated. j
Iftheexhaustgasimmissionsexceedspecificlimitvalues,damage
tohumanhealthmayoccur.Suchlimitvaluesareproposedinthestudyfor
variousexhaustgascomponents,andinparticular,forthecarbonmonoxide
contentintheair.Promthemedicalstandpoint,substantially highervalues
areregardedaspermissableforthehalf-hourmeanvaluethanforthe24-hour
meanvalue.
Thehighestpermissable emissionvaluescorresponding tothereduced
immissionvaluesweredeterminedonthebasisofamethodeaowingareduction
intrafficdensity.
Thecostsoftheenvironmental burdenofmotorvehicleexhaustgases
totheeconomyasawholewere,asinthecaseoftheenvironmental noise
burden,quantifiedwiththeaidofanavoidancecostestimate?thecapital
costsoftechnicalvehiclemodifications toensureobservanceofimmission
limitvaluesweredetermined .,
•». »•..
Theadditionalexpenditure onnewvehicleswithreducedemissionvalues
isquotedinthestudy.Thisnetinvestmentoutlaywasspreadovertheservice
lifeofthevehicleandthenappliedtothe"exhaust-gasrelevant"distance
coveredannually,resultinginspecificcostsoftheenvironmental burden
fromexhaustgasesperpassengervehicle-km.
/.

-8-
•IV.;
Theexpertshaveendeavouredtofulfiltheirtaskinthemost
comprehensive mannerpossible.Thisstudy,whichwasassembledby*
representatives ofthedifferentdisciplines workinginclose-cooperation ,
thusprovidesawealthofhithertounavailabledataandinsightsintomutually
interdependent phenomena.Ontheotherhanditalsorevealstheareasin
which,inviewofthecomplexityoftheproblemstobesolved,further
studiesarenecessarytoconfirmtheresultspresentedforindividualaspeots.
Aparticularproblemistheextenttowhichthe.resultsobtained
applyinotherMemberStatesoftheEuropeanCommunities.Thestudypresented
wasveiy.largelybasedonstatisticaldataandquantitiesvalidforWest-
Germany.Thediscussionstobeexpectedfollowingpublicationofthestudy
shouldshowtheextenttowhichtheconclusionstobedrawnfromthereportare
alsovalidforotherECcountries. ...
1 •,'• ''••
Thesediscussionswilldoubtlessalsoleadtofurtherrefinementof
theinitialsolutionspresentedintheresearchreport,toenablethegaps.,
stillremainingtobefilledandtopavethewayforamethodologyofcalcul­
atingenvironmental costswhiohcouldbevisedinacomparablemannerinall
MemberStates.

ANITEXV! ,,
INFRASTRUCTURE CHARGING AMDTHESELECTION OP
,BTFRASTRUCTURE IKVESTIjMTS
–Summary-

-2,-
INFRASTRUCTURE CHARGING ANDTHESELECTION OP
INFRASTRUCTURE INVESTMENTS
(SummaryoftheReportby
ProfessorsK.H,GUILLIAMandJ.A,£IGHSRA)
Introduction
1*The.followingparagraphssummariseandreflecttheviewsofProfessors
GwilliamandZigheraase:!pressedinthereportwhichtheyworeaskedto
preparebytheDirectorate-General forTransportoftheCommission,
ι
Aims
2,Thethemeofthereportacstated,bytheauthorsisto"investigatethe
relationship ,bothintheoryandpractice,between*onthe-,onehand,marginal
socialcostpricingcombinedwithabudgetaryequilibriumsystem,andonthe
otherhand,theselectionofinfrastructure investments".
3»Theirstudyisderivedfromthereportonthe"Coordination ofinvest­
mentsintransportinfrastructure (GPVZ)(l).Itsaimsaretorevealand
classifypossiblecontradictions ratherthanattempttofindsolutions;how­
ever,thestudyisnotintendedtobepurelytheoretical andshouldthrow
lightuponthepracticalmethodsavailabletoimproveuponcurrentpolicies.
ι
Infrastructure Charging
4,Thesystemofmarginalsocialcost,withbudgetaryequilibrium,originated
intheAllaisReport(2),Basedonthisreport,togetherwiththatof"JTal-
cor"(3)andthePario-LeHavrepilotstudy,theCommissionsubmittedaproposal
(l)ByProfessorsGwilliam,Petriccione,VoigtandZighera(Doc,332/VII/72rev,l)
(2;"Optionsdelapolitiquetarifairedanslestransports"byProf,Allais,
delViscovo,DusqueBnedelaVinelle,OortandSeidenfus,Etudessérie
Transports,EECBrussels19^5-1
(3)ProblèmesposésparInapplication pratiqued'unetarification pourl'uti­
lisationdesinfrastructures routières.EtudessérieTransports,EEC
Brussels1970-2

-3-
ttothoCouncil forthe introduction ofacommon cystemof .charging forthe
useoftransport infrastructure "(1)♦-Itisuseful todistinguish theaspects
ofmarginal social pricing ontheonehand andbudgetary equilibrium onthe
other hand . ...
5« Karginal social cost isconsidered tohave been clearly defined and
divided into three categories :
V*marginal costs ofuse :made upofmaintenance ,renewals ,operation and
management ;
–marginal congestion costs :made upoftime losses ,waiting time ,increased
,consumption (allexternal tothemode ); .. *
' V" v. ,;* .»• < * ■■
-*marginal external costs ,which covers accidents ,noise andpollution ,aswell
astheinteraction between modes . :ri'-..
61 :Budgetary equilibrium although -seemingly adequately defined inprinciple
liashotbeendefined with sufficient clarity initsmethod 's-ofapplication .
Thedeifiriiiion ofsUb-groups ,eachofwhich touet be'subjected totheconstraint
ofbudgetary equilibrium ,isnotclearly made except tothe°extent that they
must beunimodal andregional# Moreover theproblems ofimputing thediffer­
ence between thetotal ofmarginal costs andthereceipts necessary f6rbudgetary
equilibriums to-thedifferent categories ofusers need tobedealt with'?There
are'thus some reservations concerning thecompatibility ofmarginal social
costs andbudgetary equilibrium .
:*.,
Investment Choice . ..,,
i»Thepolicy forthecoordination ofinvestments ismuch less developed
'than that forinfrastructure charging .TheGP7Z report referred toinpara 3
. y)l , 'I' I
isbased onthefollowing philosophy : " *• :
(1):C01I(71)263 final .
:. •, ' ■.■' : > ■ ■ ■

-investmeritchoiceshouldbeprecededbyacomparisonofthediscounted ,costs
andbenefitsofthevariousalternatives ,
-publicinvestmentdecisionstakeintoaccountobjectiveswhichcannotbev
measuredinmarketpriceterms,oronlypartlyso.Specialmethods;to-
measuresuchobjectivesmustthereforebedeveloped,Hierethesemethods
are-opento-doubt,andtotheextentthatsuchobjectives becomeimportant,
itisvitalthatthedecision-making processshouldbeasclearandastrans­
parentaspossible.
Asindicatedforinfrastructure chargingabove,somequestionsremain
onthecompatibility ofthese,tviostrandsoftheauthors *^reasoningconcerning
thechoiceofinvestments :theyhavebeenpartlydiscussed'inthe;GPVZreport.
Settingofvelues
3.Theinvestmentchoiceproblemformsonepartofthetransportdecision
makingprocess,inthecontextofwhichthere'arenumerousfactorswhichare
notcommensurable orevenquantifiable .Ontheotherhand,infrastructure
pricingquestionsarealsopartofthedecisionmakingprocess,andthevery
processofsettingpricesimpliesthatsocietyhasplacedavalueonsomeat
leastofthenon-commensurable andnon-quantifiable elements.Bothinpricing
andinprojectevaluationsuchvaluesareoftenderivedfromthebehaviour''
andjudgementofinstitutions aridofusersbeittoadifferentdegree.
Conclusions
9.Beforedealingwi^htheconclusionspropocrofthereportsitshould
benotedthatthereisnothinginthestudytoquestionthebasicprinciplesof
infrastructure pricingadoptedbytheCommission,andanypossibleimprovements
stemmingfromthereport'srecommendations donotjustifydelaytodecisionsbein
beingconsideredcurrently.
10.Theimportanceofpricingfortheoptimumuseofinfrastructure is
clear.Itisalsoclearthat,especiallyincongestionsituations,thepricing
regimeadoptedotproposedwillsubstantially affecttheapparentdesirability

r5-
ofinfrastructure projects.Thecrucialproblemisthatofdefiningwhat
reallyisthesocialoptimumwhenthefullrangeofObjectivesandinter­
•relationships istakenintoaccount*.Hence,escpeciallywhereexternaleffects
areprevalent,thedefinitionofanoptimalpricesystemisverydifficult*
11.■In.attemptingtodefinethisoptimumpricesystemonemayadoptthe
theorythatpricesshouldbesetinsuchawaythatfullcostsofinfrastruc­
tureshouldbecoveredandthatthisshouldbeachievedinsuchawayasto
minimisethedistorsionawayfromthatutilisation whichwouldresultif
priceswereeverywhereequaltomarginalsocialcost.Butthereisalack
ofbothi;heknowledgeaboutdemandelasticities forvarioustrafficsandthe
instrumentsofpricediscrimination necessarytofeelsatisfiedthatthis
"minimumdistorsion"outcomecaneverbereached. ;
12.Costbenefitanalysistechniquesalreadydevelopedallowtheidentifi­
cationofgoodinvestmentprojectsataverygenerallevel.Itisnotpresently
possibletoquantifypreciselythewayinwhichdecisionsimpactonthe
otherobjectives(e.g.environment,regionaldevelopmentetc.).Butwith
theexceptionoftheurbansituationwheretheinteractions aremostcomplex,
itisconsidered possibletodescribeexpectedaffectswithsufficient
claritytoallowthemtobetakenintoaccountsensiblyindecisionmaking.
Moreover,intheinter-urbancontext,therateofreturnonprojectsisnot
expectedtobehighlysensitivetotheinfrastructure pricingpoliciesadopted.
Henceitisbelievedthatitissensibletoproceedwithinter-urbanprojects
byapplyingcost-benefit analysisandgeneralevaluationmethodsindependently
oftheprogressmadeintheimplementation ofthepricingscheme.
13.Thebestuseofurbantransportfacilitiesismorecomplex.Itis
neithersimplyatransportquestionnorafinancialquestion,butisessen­
tiallyconnectedwithurbanplanninginthebroadestsense.Thecomplexity
andmagnitudeofexternalities excludesthepossibilityofanysimpleformula
toachieveefficiency.Arbitraryfinancialrulesareverylikelytopresent
problemsinsecuringconfirmitybetweentransportplanningdecisionsandurban
planningingeneral.Iftheproperconsideration ofplanningoptionsand
availableplanninginstruments showsthatacertaintrafficpatternisright

thenthisshouldtakepriorityoyeranyarbitraryfinancial -target-in:4nfra-
;etrucinajcemanagement•As,acorollaryofthisfhowever*great'Pax;©willneed-
to"betakenensurethatthis approachdoes.not.haveconge^uqntialreper­
cussionsoninter-urbantransport.Itmaybenecessarytohaveseparate
financti^lregimesforurbajj^d.inter-urbgn organizations toensurethisfi.:.-
14»?-For.in&er-rurban -traffictheexternalities appear,tobemuch-less...j.;.
significantandinthiscontextit-seemsthatfinancialcriteriaset,for>
eachmodeororganization ,disaggregated spatially,oouid.produceinduce­
mentsto-efficientUseofresources.Eachunitcouldseekfinancialt-adjust-
montsinrespectofexternaleffects?thepaymentofsuchadjustments by
nationalauthorities would,havetoconformtocommunitydeterminedpr^jaciples.
Butitdoesappearthat,forthisverysubstantialpartofthetransport
sectorthatnbinsuperabledifficultiesarisefromtheinter-reiationshipu
ofpricinga«dinvestmentissues. *