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Showing posts with the label variabilisation

From fuel taxes to 'pay as you drive'

The US has started trials for distance-based charging mechanisms aimed at ultimately replacing the gasoline tax. Motorists in several US cities are being recruited to try out a new mileage-based road user charge system . The Public Policy Center of the University of Iowa is leading the trial. This is very good news (although I realise this trial is only the first step in a very long process with no gurantee of political success). Smart folks like Bern Grush and Robin Chase have been calling for usage-based pricing for a long time and pointing out that motor fuel taxes are gradually failing us. The Netherlands, Singapore and the UK apparently have plans for distance-based charging too. Germany and Switzerland already charge heavy vehicles based on distance and weight. There are spin-off opportunities here. I hope they don't get missed! It would be natural for people to be suspicious about having 'extras' that piggy-back on a new user charging system. But I think it would b...

Should we (can we?) make our cars dispensible?

It's interesting to see the ideal of universal car ownership gradually eroding. Don't believe me? There have been several books in recent years along the lines of " Divorce your car! " and " How to live well without a car ". The rise of car-sharing has prompted some to see it as a potential alternative to car ownership. The car-free housing movement seems to be gathering pace and entering the mainstream of real estate development in certain places. Meanwhile, Shoupista parking policy reformists are increasingly questioning parking entitlements, including (gasp!) residential parking entitlements. Even William Ford Jr . of Ford Motor Company seems willing to contemplate a future in which cars provide a service rather than being primarily a product . So more and more people seem to be asking the question, 'are our cars dispensable' or 'could we make our cars more dispensable?' But maybe a more positive way to ask the same question is, 'can...

"Metered Access" to Cars - could this become the norm?

Imagine a future where most of us have easy access to cars whenever we want but few people have a car of their own. Does that sound horrifying or wonderful to you? Chris Bradshaw is an imaginative thinker about urban transport. A retired planner form Ottawa in Canada, he has long been an advocate for pedestrian rights. More recently, he has made car-sharing a passion. Bradshaw's vision for the role of carsharing is ambitious and striking. He envisages a future in which having a car of your own becomes the exception. The normal way to get access to a car would be through what he calls MASC, or 'metered access to shared cars' . This would make car-sharing, taxis and car-rental much more central to urban transport policy making than they are now. [Note: Carsharing enterprises are sometimes called car-clubs or car co-ops but don't confuse carsharing with ride-sharing or car-pooling.] He explains his ideas in a paper entitled, 'How Carsharing Can Reduce the ''D...

Escaping the "all you can eat" motor insurance buffet

The Freakonomics guys have just given Pay As You Drive (or PAYD) insurance some much-needed publicity. Also called 'distance-based insurance', this turns motor insurance payments, which are usually a fixed cost, into a variable cost. This makes it possible to save money by driving less. They write in their April 20 column in the New York Times Magazine . Imagine that Arthur and Zelda live in the same city and occupy the same insurance risk pool but that Arthur drives 30,000 miles a year while Zelda drives just 3,000. Under the current system, Zelda probably pays the same amount for insurance as Arthur. While some insurance companies do offer a small discount for driving less — usually based on self-reporting, which has an obvious shortcoming — U.S. auto insurance is generally an all-you-can-eat affair. Which means that the 27,000 more miles than Zelda that Arthur drives don’t cost him a penny, even as each mile produces externalities for everyone. It also means that low-mileage...