This paper gives an insight into the primary welfare effects as a result of the introduction of kilometre charging principles in The Netherlands. By means of the `The Rule of Half' application, changes in consumer surpluses of various groups of persons in The Netherlands, as a result of the introduction of three policy packages regarding kilometre charging, are estimated. This is done by applying `The Rule of Half' to 85 million subgroups in the LMS (National Model System) traffic model. This level of precision was necessary in order to address all the dimensions and characteristics of the mentioned groups of persons. The paper concludes with the representation of the results in the form of effects and welfare changes as a result of the introduction of various policy packages of kilometre charging. Since the results of this research are only estimations of the primary effects of kilometre charging, it is noteworthiness that these results form the input for further research regarding the economic effects of such policy packages. (A)
Abstract