TAILIEUCHUNG - The Marginal External Cost of Car - with an Application to Belgium -

Existing car-sharing schemes in Sweden and elsewhere have provided a norm for indicating what car-sharing, both generally and in Sweden in particular, represents. A more adequate definition, however, applying to car sharing in Sweden, appeared to be needed. Through providing such a definition, through suggesting appropriate quality requirements car-sharing should meet in order to receive public support, and through considering various questions of practical importance in this context, the Swedish National Road Administration hopes to contribute to a better understanding of car-sharing generally. Doing so also creates a more adequate basis for planning on the part of those who want. | Tijdschrift voor Economie en Management Vol. XXXVIII 3 1993 The Marginal External Cost of Car Use 1 - with an Application to Belgium - by I. MAYERES I. INTRODUCTION Road space is a valuable and increasingly scarce resource. Therefore it is argued by economists that its use should be rationed by price. In order to induce road users to make the correct decisions about whether and by which mode to make a particular journey they should be charged the marginal social cost of using the road network. Due to the existence of negative externalities this marginal social cost may differ from the marginal private cost paid by the road users. Marginal external costs are costs caused by the additional use of the road network which are not borne by the additional road user himself but by others the other road users or society in general. The aim of this paper is to develop a quantitative measure of the marginal external costs associated with passenger car use in Belgium. It concentrates on three main external cost categories environmental costs congestion costs and accident costs. Several elements for the monetary valuation of the marginal external costs of the different transport modes for Belgium were discussed by Blau-wens 1991 and in the Mobilis report Febiac 1992 . However except for the marginal congestion costs no concrete values were derived. Concrete monetary values of the marginal external costs of road transport in the UK were estimated by Newbery 1987 1988 Centrum voor Economische Studiên . I would like to thank V. Boniver c. Kolstad s. Proost and an anonymous referee for helpful comments on earlier versions of this paper. All errors remain mine. 225 1990 . He did not quantify the marginal environmental costs but expected them to be only a small proportion of total marginal external costs. This is one of the aspects which will be investigated in detail in this paper. An alternative to Newbery s derivation of marginal accident externalities is found in .

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