TrafficSum

Inadequate and inefficient organization of the road system with consequences

Far-reaching trafic, ecological, and economical consequences arise from the inadequate and inefficient organization of the network of roads: there are neither enough funds for the upkeep of the existing system of roads, nor for its optimization. On top of that, existing funds are inefficiently utilized. Furthermore, the environmental consequences of traffic are fatal.

Insufficient cost transparency, and distortion in the system

In the end, an important fundamental reason for these developments is the insufficient cost transparency of the system of roads, which hinders a justifiable allocation of costs. The result of this insufficient cost transparency is moreover a distortion in the transportation system, because traffic volume is - among other things - a function of cost.

Tax burden without correlation to the cost of the system of roads; imbalanced competition

It is to be criticized in detail that road construction is financed through the general public budget, and that there is no correlation between the drivers’ tax burden and the resulting costs. Furthermore, the individual means of transport are in competition with one another, but, due to federally determined guidelines, there is no equality among competitors. In addition, inefficiencies in the road system arise due to the fact that the state acts as the operator of roads.

Economical, traffic political, ecological, and structural aspects brought together

In order to create a basis for improving the current unsatisfactory situation, the Research Group “Jetzt & Morgen” in cooperation with Eberhard Löwenberg has developed a comprehensive approach to the discussion. This approach strives toward a conclusive overall concept in that it consistently brings together economical, traffic political, ecological, and structural aspects.

Comprehensive account of costs; justly allocate costs for all non-municipal roads; use revenue for road traffic purposes

Along with equal competition rules for the different means of transport, the new approach is for a comprehensive account of costs for the system of roads from planning and construction to maintenance and renaturalization. The reason: experience shows that only cost transparent systems are functional in the long term. The costs must be justly allocated, by which a fixed share and a use-oriented share are to be designated. The fixed share as a road-use tax (which the current tax on fuel has largely replaced); and the variable share of costs as a toll. Road-use taxes and tolls may only be levied to the extent of the accumulated costs, and revenue is to be used for road traffic purposes. Tolls are planned for all non-municipal roads. As a countermove, the automobile tax is to be done away with; the mineral oil tax would still be available to achieve a defined contribution to the general tax revenue.

Environmental taxes in conjunction with ecologically justified and quantified environmental goals; do not pursue a function of revenue

Environmental taxes are to be levied in order to limit the consequences of traffic on the environment, and are to be considered in the accounting of costs (refer to the Study for an ecologically effective and economically efficient ecological tax reform). Environmental taxes may only be implemented in conjunction with ecologically justified and quantified environmental goals in an amount that will in all probability lead to a legally predetermined reduction of the pollution output. The rate of an environmental tax is at least approximately to be set taking price elasticity into account, while benefiting the environmental goal. A revenue function should not be pursued. Corresponding to common requirements, environmental taxes would be bound in a comprehensive tax concept which will not lead to higher taxes. Because environmental damage means that costs are not covered, revenue from environmental taxes is to be used consistently in ecological balancing measures.

Consolidate responsibility

To consolidate the responsibilities in road construction and operation is organizationally meaningful and could lead to medium-term privatization of the system of roads. By doing that, the state is to pursue the sovereign tasks and insure them through specific arrangement of contracts with the concessionaires as well as by supervision.

Published in 2000 in German:

“Diskussionspapier zu Straßenbau und -betrieb: Auf dem Weg zu Kostentransparenz und Effizienz” (Paper on Road Construction and Operation: The Way to Cost Transparency and Efficiency).