Actual and perceived variable car cost levels are too low, notably from a social point of view, and where business cars are concerned. This imbalance can partly be corrected, if price sanctions are introduced. Because of the low level of elasticity involved, one should not overestimate the anticipated effects. If a balanced package of measures is introduced, then significant reductions in the numbers of cars on roads might be achieved. `Ordinary price control measures', like levies on fuel will be important. It is, in fact, not unthinkable that after prices for business kilometres travelled have been `normalized', such passengers will become more sensitive to generic price measures like levies on fuel and pay-as-you-ride driving. Such synergetic interdependence of various price measures cannot, unfortunately, be quantified on the basis of the present data. In a qualitative sense, however, this is probably an important indirect advantage for altering the fiscal structure related to business travel. It also emerges that pay-as-you-ride is a relatively effective instrument for reducing car usage. (A)
Abstract