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Vignette systems in Europe Buying time? · Vignette Systems in Europe . 15 April 2013 . Light...

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Scott Wilson, Associate Director, LeighFisher April 13 2013 An alternative to charging by distance Vignette systems in Europe Buying time?
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Page 1: Vignette systems in Europe Buying time? · Vignette Systems in Europe . 15 April 2013 . Light vehicle vignettes are growing in popularity 9 countries have light vehicle vignette systems

Scott Wilson, Associate Director, LeighFisher April 13 2013

An alternative to charging by distance

Vignette systems in Europe Buying time?

Page 2: Vignette systems in Europe Buying time? · Vignette Systems in Europe . 15 April 2013 . Light vehicle vignettes are growing in popularity 9 countries have light vehicle vignette systems

Vignette Systems in Europe 15 April 2013

What are vignettes?

Advantages and

Disadvantages Could they be an

alternative to MBUF?

Agenda

Page 3: Vignette systems in Europe Buying time? · Vignette Systems in Europe . 15 April 2013 . Light vehicle vignettes are growing in popularity 9 countries have light vehicle vignette systems

Vignette Systems in Europe 15 April 2013

What are vignettes?

“Each year there are around 1.5 million trips to the UK by foreign registered lorries – but none of them pays to use our roads, leaving UK businesses and taxpayers to foot the bill”

Mike Penning, Minister of Roads, United Kingdom.

Page 4: Vignette systems in Europe Buying time? · Vignette Systems in Europe . 15 April 2013 . Light vehicle vignettes are growing in popularity 9 countries have light vehicle vignette systems

Vignette Systems in Europe 15 April 2013 4

Vignette means “little vine” in French Vignettes have offered network road pricing

for around 20 years in Europe Access is bought in advance, for periods

ranging from 1 day to 1 year Usually only apply to motorways or national

highways Typically involves a sticker licence for display

on the windscreen. Some have “electronic vignettes” recorded by number plate Purchased at retail outlets, by mail, phone or

online Enforced by Police Only some hypothecate revenue for

infrastructure funding

Vignettes provide prepaid access to highway networks

Page 5: Vignette systems in Europe Buying time? · Vignette Systems in Europe . 15 April 2013 . Light vehicle vignettes are growing in popularity 9 countries have light vehicle vignette systems

Vignette Systems in Europe 15 April 2013

Mix of countries have heavy or light vehicle vignettes or a combination of both

5

Red: Heavy Yellow: Light Orange: Both Blue: Proposed

Page 6: Vignette systems in Europe Buying time? · Vignette Systems in Europe . 15 April 2013 . Light vehicle vignettes are growing in popularity 9 countries have light vehicle vignette systems

Vignette Systems in Europe 15 April 2013

Heavy vehicle vignettes getting replaced with distance charges

5 have a single system (Eurovignette) covering all their countries 4 have national heavy vehicle vignettes UK is developing its own truck vignette, partially replacing annual vehicle

excise duty (licensing tax). Latvia also developing system 5 other countries have shifted from vignettes to weight/distance charging Belgium now making similar shift to distance based charging Prices regulated by EU to ensure they broadly reflect infrastructure costs Environmental factor (cheaper if have lowest emissions ratings) EU strongly encouraging shift to distance charging for heavy vehicles

because it reflects usage and costs more fairly 1 day vignette is US$10.48 for all heavy vehicles One year ranges from US$983-US$2031 maximum Unused parts of one year vignettes can be refunded in certain circumstances

Page 7: Vignette systems in Europe Buying time? · Vignette Systems in Europe . 15 April 2013 . Light vehicle vignettes are growing in popularity 9 countries have light vehicle vignette systems

Vignette Systems in Europe 15 April 2013

Light vehicle vignettes are growing in popularity

9 countries have light vehicle vignette systems Belgium developing a light vehicle vignette system 6 of those with light vehicle vignettes have heavy vehicle distance charging EU law concerned about pricing of products being proportionate Price range from US$3.90 for a week to US$186 for a year

Page 8: Vignette systems in Europe Buying time? · Vignette Systems in Europe . 15 April 2013 . Light vehicle vignettes are growing in popularity 9 countries have light vehicle vignette systems

Vignette Systems in Europe 15 April 2013

Advantages and Disadvantages

“The principle of proportionality requires that short-term vignettes are offered at appropriate rates”

European Commission

Page 9: Vignette systems in Europe Buying time? · Vignette Systems in Europe . 15 April 2013 . Light vehicle vignettes are growing in popularity 9 countries have light vehicle vignette systems

Vignette Systems in Europe 15 April 2013

Vignettes are a different approach to tolls or MBUF

Advantages Disadvantages

Low cost and short time frame for implementation

Long term vignettes are a poor reflection of actual usage especially heavy vehicles

No need for in-vehicle equipment or extensive road side infrastructure

Annual vignettes may be seen as similar to annual licensing taxes

Easy for users to understand, especially visitors from other countries/states

Poorly designed systems can be prone to fraud

No substantial privacy issues Sticker systems impose barrier to travel requiring retail purchase

Low compliance costs once bought Little scope for innovative pricing (e.g. demand management

Pricing can be a proxy for distance charging Revenue does not increase according to usage

Can be sticker or electronic based Marketing and retail options critical for fairness

Easy to make changes to charged network

Page 10: Vignette systems in Europe Buying time? · Vignette Systems in Europe . 15 April 2013 . Light vehicle vignettes are growing in popularity 9 countries have light vehicle vignette systems

Vignette Systems in Europe 15 April 2013

Alternative to MBUF?

“Those who walk on the well-trodden path always throw stones at those who are showing a new road.”

Voltaire

Page 11: Vignette systems in Europe Buying time? · Vignette Systems in Europe . 15 April 2013 . Light vehicle vignettes are growing in popularity 9 countries have light vehicle vignette systems

Vignette Systems in Europe 15 April 2013

Vignettes could be an alternative, especially for out of state users

- Vignettes can be a “stepping stone” to distance charging - Vignettes started with trucks, now shifting to cars in Europe - Vignettes get users used to “buying for access” to roads - Much easier to sell to some than distance charging - Vignettes could be an option in addition to distance charging - Vignettes could be an option for cross-border users because of

low costs of compliance/easy to understand - Way of covering non-tolled roads in a cost effective way

Page 12: Vignette systems in Europe Buying time? · Vignette Systems in Europe . 15 April 2013 . Light vehicle vignettes are growing in popularity 9 countries have light vehicle vignette systems

Scott Wilson http://www.leighfisher.com

+ 44 7436 032 466

Road Pricing Blog http://roadpricing.blogspot.com @RoadPricing


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