As urban areas worldwide experience traffic increases, undesirable side effects such as congestion, CO2-emissions, noise and accidents have increased. The use of road pricing has the potential to increase social welfare by encouraging more efficient use of the transport infrastructure.

Traditionally, driving in cars mostly has been taxed indirectly by taxing buying and owning cars, or through tolls on specific roads. However, the negative side effects associated with cars mainly are associated with the use of cars, not the ownership.

Gasoline taxes target using cars and associated energy consumption and CO2 emissions. With road pricing, it is possible to tax not only using cars, but also congestion, as drivers are taxed based on how much, when and where their driving takes place. Therefore, this has long been suggested as a better solution.

However, concerns have been raised related to implementing road pricing when it comes to e.g. technology, system costs, surveillance and distributional effects, and we still are waiting to witness wide use of large-scale implemented systems.

However, technological progress in recent years has reduced the technological concerns and expected system costs of road pricing systems significantly, making the drumbeat for road pricing even louder.

At DTU Management, we study how road pricing systems can be designed and implemented, and we evaluate the expected consequences. We study the effects on traffic, transport, congestion, welfare, and distributional effects, and we study how the use of road pricing interacts with other policy instruments.
DTU Management has extensive experience with research on roadpricing and is involved in a national large-scale roadpricing experiment.

Please get in touch with us if you have ideas for research projects or need an expert opinion.


Ninette Pilegaard

Ninette Pilegaard Deputy Head of Division, Head of Section Department of Technology, Management and Economics Phone: +45 45256554