Eco-Pricing of Mobility

This paper discusses mobility pricing concepts from viewpoint of ecological targets and sustainable development. The current Finnish mobility pricing system is used as a starting point, and then proceeding along the lines of discussion towards its strengths and weaknesses with regard to environmental policy agenda. Since the Finnish practice has a long tradition of internalizing the external costs of ecological and environmental costs, it serves as a good spring board towards eco-pricing. If eco-pricing would be adopted, there would be necessary economic trade-offs. Hence, the question turns into political and social one: how much are we willing to pay for ecological mobility? The technological issues are considered in the end, as eco-pricing will require the employment of different technologies. However, the technological challenges are probably easier to tackle than the political, social and institutional ones. Finally, some aspects of advanced vs. developing economies are discussed.

This paper discusses mobility pricing concepts from viewpoint of ecological targets and sustainable development. The current Finnish mobility pricing system is used as a starting point, and then proceeding along the lines of discussion towards its strengths and weaknesses with regard to environmental policy agenda. Since the Finnish practice has a long tradition of internalizing the external costs of ecological and environmental costs, it serves as a good spring board towards eco-pricing. If eco-pricing would be adopted, there would be necessary economic trade-offs. Hence, the question turns into political and social one: how much are we willing to pay for ecological mobility? The technological issues are considered in the end, as eco-pricing will require the employment of different technologies. However, the technological challenges are probably easier to tackle than the political, social and institutional ones. Finally, some aspects of advanced vs. developing economies are discussed.