Thursday 13 September 2012

The cost (price) of motoring

I got involved in a discussion on an internet group about the substantial increase in Controlled Parking Zone (CPZ) fees and the differentiation of them acording to the CO2 emission rate of the vehicle.

As this conversation was continuing, the new IPPR report came out - see http://stibasa.blogspot.co.uk/2012/08/motoring-taxes-need-to-triple-to-cover.html - having the conclusion that (in essence) the £ motorists pay out does not cover the cost of externalities and therefore is too low.

I introduced the IPPR report into the discussion, but the whole thing got bogged down. My opponent took the view that the CPZ charges were too high and unfair. I tried to make the point that if the £ paid out by motorists in total does not cover the total costs of what motorist should pay for, the fact that one element of the total cost is too high doesn't especially matter.

Of course there would be some disagreement about what motorists should pay for, but the principle still holds. Even if my opponent could show that the price of the CPZ permit was really too high, he couldn't simply ignore the fact that other prices are too low.

The list of things that motorists pay out for, and how much they pay, ought to be fairly easy to make, at least for an individual motorist, though I expect many don't keep a note and would have no idea of the total. This could help explain the focus on pump prices for fuel and parking prices, which are easy to see.

In her book "Cutting Your Car Use", Anna Semlyen gives, in chapter 6, a comprehensive breakdown of the elements of running a car that cost money. (She gives cost estimates, too; Even if these weren't at 1999 prices, there are lots of assumptions, but nevertheless, it gives a clue). It is complicated, and it's no surprise that people don't know.



1 comment:

abigail said...
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