Income and spatial equity impact of nationwide road user charging strategies in the EU context

EU authorities have been promoting nationwide charging systems for heavy goods vehicles and, more recently, for light vehicles as well, which could have significant effects on social and spatial equity. Contributions from the European perspective are scarce, in contrast to the relatively abundant literature from other regions such as the US. This article assesses the equity effect of a hypothetical implementation of road user charging for light vehicles in the European context, using Spain as a case study. We use data from the National Household Budget Survey, and explore the equity effects of different pricing mechanisms: flat fees or vignettes, distance-based fees, and schemes with exemptions or modulations based on different criteria such as household income, household location (urban/rural areas), or mileage driven. The analysis finds certain progressiveness in charging users based on household motorization or mileage. When compared based on a similar revenue collection target, mileage-based schemes tend to be more progressive (higher household payments with income level) than vignette systems, even though the latter usually generate less public opposition. Equity analysis points to significant gains in equity by implementing charging modulations based on household income and place of residence. Finally, the paper proposes recommendations for policymakers to make nationwide road user charging more equitable.