Road pricing and CO 2 emissions from road transport Tony Grayling Presentation to ippr Road user charging: Building a consensus conference, 26 October.

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Presentation transcript:

Road pricing and CO 2 emissions from road transport Tony Grayling Presentation to ippr Road user charging: Building a consensus conference, 26 October 2005

Climate change Urgent need to cut greenhouse gas emissions Department for Transport shares responsibility to cut emissions CO 2 emissions from road transport are large and growing

UK domestic carbon dioxide emissions (MtCO 2 )

UK road transport emissions (MtCO 2 )

Road pricing options Revenue neutral to motorists overall by cutting fuel duty Revenue neutral but cut VED and/or other non- motoring taxes Revenue raising with or without hypothecation to transport Variable rates according to CO 2 emissions standards as well as congestion

Possible effects of national congestion charging in 2010 ModelStephen Glaister & Dan Graham National Transport Model (NTM) Charging scenario Revenue neutral Revenue raising Revenue neutral Revenue raising Traffic+7%-7%+2%-4% CO 2 +5%-8%-1%-5% Net revenue 0+£16.6bn (2010 price) -£2.2bn (1998 price) +£8.6bn (1998 price)

ippr recommendations National road pricing to replace VED but not fuel duty Keep bands i.e. higher rates for gas guzzlers and vice versa Ear-mark surplus revenue for extra transport spending