3 Draft criteria for assessment Criteria General description Application to road pricing 1. Economic efficiency Maximising societal welfare, For transport policies and particularly in the presence of projects this is principally market failure. Incorporates driven by changes in demand triple bottom line through travel considerations incorporating patterns/behaviour. Likely economic, social and demand impacts of different environmental costs and pricing models need to be benefits from a considered including how each perspective. option contributes to more efficient use of existing transport infrastructure. Adverse impacts to travel patterns at a pricing boundary should be considered. 2. Beneficiary alignment User or beneficiary pays Road pricing policy should aim principle the charging to ensure those who use the –aligning associated with provision of roads the most are the ones infrastructure with users and who contribute to the cost of those who benefit from the the infrastructure. infrastructure. Contribution should be proportionate to benefits received. Those with similar levels of benefit should be treated similarly. 3. Fairness This incorporates affordability people live, how far they and fairness. Fairness allows for travel to work and how often socioeconomic and they travel are informed by demographic factors as well as socio-economic factors. spatial impacts. Pricing policies should consider social equity and distributional impacts and be affordable so that we do not facilitate transport disadvantage. 4. Environmental impacts Environmental considerations Pricing policies can affect the including greenhouse gases, demand for travel, which in noise, impacts on urban turn will impact on greenhouse separation, heritage, flora and gases, noise and the amenity of fauna. the natural environment. This includes consideration of pricing models that may divert traffic onto local roads with adverse amenity impacts
3 Draft criteria for assessment Criteria General description Application to road pricing 1. Economic efficiency Maximising societal welfare, particularly in the presence of market failure. Incorporates triple bottom line considerations incorporating economic, social and environmental costs and benefits from a perspective. For transport policies and projects this is principally driven by changes in demand through travel patterns/behaviour. Likely demand impacts of different pricing models need to be considered including how each option contributes to more efficient use of existing transport infrastructure. Adverse impacts to travel patterns at a pricing boundary should be considered. 2. Beneficiary alignment User or beneficiary pays principle –aligning the charging associated with provision of infrastructure with users and those who benefit from the infrastructure. Road pricing policy should aim to ensure those who use the roads the most are the ones who contribute to the cost of the infrastructure. Contribution should be proportionate to benefits received. Those with similar levels of benefit should be treated similarly. 3. Fairness This incorporates affordability and fairness. Fairness allows for socioeconomic and demographic factors as well as spatial impacts. people live, how far they travel to work and how often they travel are informed by socio-economic factors. Pricing policies should consider social equity and distributional impacts and be affordable so that we do not facilitate transport disadvantage. 4. Environmental impacts Environmental considerations including greenhouse gases, noise, impacts on urban separation, heritage, flora and fauna. Pricing policies can affect the demand for travel, which in turn will impact on greenhouse gases, noise and the amenity of the natural environment. This includes consideration of pricing models that may divert traffic onto local roads with adverse amenity impacts
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