Torild Skogsholm

State Secretary, Ministry of Transport and Communications

Evaluating international policy objectives and regulatory approaches to urban traffic control

Berlin 10TH DEC. 1998
Urban Transport Development and Financing

Compared with most countries, Norway does not have major congestion problems in the urban areas. Norwegians complain about queues in Oslo, but we must admit that these are minor problems compared with most other countries/cities.

Major city areas in Norway:

Oslo – the only big city
Bergen
Trondheim
Stavanger
Tromsø
Drammen
Grenland
Kristiansand

Rate of public transport (share of all person travels included walk/cycle)

Congestion, congestion-costs, average time spent in queue

The Norwegian research institute, Institute of Transport Economics TØI, has provided estimates of the external congestion cost in the cities Oslo and Trondheim (third biggest city in Norway). In the morning peak hour the average external congestion cost per vehicle trip in Oslo area is 18 NOK (2,25 ECU). In Trondheim, the cost is 8 (1 ECU). In the hours 9 a.m. to 3 p.m. the cost is 5 (0,63 ECU) in Oslo, and none in Trondheim.

The congestion costs could be reduced about 35 mill NOK (4,38 mill ECU) for Oslo area and 27 mill (3,38 mill ECU) in Trondheim area if 20% of vehicle trips can be removed from the peak hour in the morning.
Other external costs from road traffic than congestion costs are related to air pollution, noise and traffic accidents.

A major problem about traffic in cities in Norway is the asphalt dust created by the use of studded tires.

In Norway people want to live in their own house with their own little garden and close to nature. Land is not a problem in Norway. Until recently, only specially interested and socially deprived people wanted to live in the cities more than for a few years. Recently we have seen a change, and also we see this as a way to reduce the traffic problems related to major cities.

How is the government interfering in traffic and transport matters in the big cities?

First of all,

• The government invests in public infrastructure.
• The regional authority gives subsidies to running public transport.
• The government is responsible for laws and regulations concerning the construction of the transport system.

The main issues and priorities in Norwegian transport policies are presented in the annual budget. However, the guidelines for the annual budgets are given through national transport plans. The Government’s proposals for the national transport policy is presented to the Parliament every fourth year in separate 10-year plans for each transport sector, proposing aims, priorities and financial framework.

Establishing successful regulatory measures to control urban congestion

Evaluating which measures have proved most successful and what likely future steps may be taken

In the long run the solution to congestion is not to continue to escalate road investments. We want to give people incentives to use alternative means of transport, and thereby have an efficient use of the infrastructure.
Our target is to limit the use of private cars as transport medium and increase the use of public transport within the city areas.
When people move back to central city areas, and live near to work – it will have an impact on our present congestion problem. This will make it easier to build efficient public transport system, and reduce the need for transport.

We are working to

• Develop an efficient transport system in main city areas.
• Develop a transport system that is not harmful to the environment.

Fees on cars and fuel

We have excise taxes on vehicles and petrol.
The tax on petrol is

• general tax on petrol and diesel
• CO2-tax on petrol and diesel
• Sulphur-tax on diesel

The tax on vehicles is a tax independent of use. This tax is mainly a fiscal tax, but also helps to develop a fleet of cars that is better to the environment. The tax is differentiated according to weight, engine power and purpose.

Norway follow the regulations on waste gas that is put forward by ECE. Also, we are committed to follow the regulations that EU put forward. Waste gas is dependent on the maintenance of the vehicle. The EURO-control of vehicles that includes control of the level of waste gas will be of importance to improve the environmental effects of the car fleet.

Taxes on fuel

The petrol and diesel tax gives incentives to drivers to reduce their use of petrol/diesel. Unfortunately, it is impossible to quantify the effect of the tax. Even so, we believe there is a significant effect on consumption and discharge. Compared to the situation without taxes, the fuel tax decreases the transport volume and gives greater efficiency in energy use. The tax level on fuel is higher in Norway than most comparable countries.

Average energy taxes in selected countries 1995, $/ton CO2:

Public transport

Public transport may be an instrument to reduce the local environmental problems in urban areas. The effect will depend on weather the number of car transports will be reduced, and weather the total transport "volume" will be reduced.

It is important to have a solid public transport system in areas where it is preferable with respect to the environment, that is, in urban areas. Through buying transport services together with investments in infrastructure the government will improve the conditions for public transport. One means is to build railway tracks in the most frequented routes (Nord Jæren).

Public transport vehicles that are adjusted to passenger needs may improve the quality of the product. Regular departures and high frequency makes public transport more attractive. In Kristiansand, vehicles adjusted to passenger needs and better regularity alone increased the rate of public transport by 21% in 5 years.

Parking rules

The government sees parking regulations as an important means to reduce congestion and environmental problems. It is important to develop an over all (general) parking policy. What makes this difficult is the fact that the responsibility for the parking policy is divided between different authorities.

If parking is impossible/difficult and expensive, this will make car transport less attractive. So will one-way roads, streets only for walking, and speed restrictions.
Building parking lots near by public transport junctions in the surrounding areas can reduce the traffic in the city center.

Spatial planning together with transport system planning

There is a close connection between land use and transport system and the volume of transport. The factors are mutually influencing each other.
This makes it important to see spatial planning together with transport system planning. To limit the transport volume it is necessary to run a spatial planning policy through time that considers the float of transport developed by the situation of private houses and trade and industry.

Alternative roads

New main road systems and alternative roads can lead large quantities of traffic outside the city/urban area. Also, such efforts are important to increase road safety and to make the road system more passable. In one part of Oslo such effort has been very successful. Most people in the area influenced by the old road system have experienced less air pollution and less noise nuisance. But off course, the people who live close to the new roads/alternative roads have lower quality of life, due to the increase of local air pollution, noice nuisance, etc. they get.

Environmentally friendly roads

(Large parts of the road network are turned into so called environmental roads where the traffic has to comply with the pedestrian's rather than the motorized vehicles’ premises.)

The goal is to give priority to the functions of the local environment and at the same time increase road safety, lessen pollution from traffic and increase the esthetic qualities of the local environment.

Toll money, time differentiated taxes

At present Oslo, Bergen and Trondheim operate toll rings. In Trondheim and Bergen the toll rates are differentiated by time of day. The revenue from these rings is appropriated for road projects, and the main purpose of the toll rings is to finance road investments.

It is possible within the present laws to use toll rings as regulatory means, but to a very limited extent. The main purpose of the toll rings is financing investments in infrastructure. But we are working on a proposition for a law that will make it possible to use toll rings only as traffic regulatory means. This is what we call road pricing.

Road pricing

The purpose of road tolls in Norway is purely to finance infrastructure. Charges are thus linked to investment costs. Charges may however be differentiated according to time of day, i.e. approaching road pricing. Toll systems are limited in time, normally 15 years. There are electronic toll rings in operation around three of the major cities, Oslo, Bergen and Trondheim.

For the time being Norway does not have a road pricing system in operation. Road pricing represents a possibility to achieve better use of road capacity and better local environment. The Ministry of Transport and Communications will propose necessary legislation and instructions concerning road pricing next summer/autumn. The purpose of a road pricing system will be to regulate traffic, and the charges should be set at a level according to external costs. There will be no time limitation in the use of road pricing as is the case for toll financing.

The main purpose of road pricing is to internalize the external costs that are created by road traffic.

In principle, the income should be of no interest to the city who runs road pricing because the city will gain better environment qualities, and the external costs of congestion will be internalized. But, to get the local political approval we want to earmark the revenue from road pricing to public transport. The revenue can be used not only for investments, but also for the running of the transport systems.

An experiment has been run in Trondheim. The Norwegian research institute SINTEF has analyzed this experiment. The experiment showed that road pricing (set out as time differentiated prices in the toll ring) in periods with highest price (the rush hours) the decreased by 10% the first period after road pricing was set in action. After a while, the effect was 17% less traffic in rush hours. Also during periods with medium prices, the traffic was lowered. The reductions in traffic in rush hours and medium priced hours was outweighed by increased traffic in "cheap" hours. The change in traffic was put forward by a small group of the participants in the project. On the margin, road pricing showed to have the effect on traffic behavior that is wanted.

Surveillance of air pollution

The ministry of transport and communications is working on a project that will develop a system that survey the air pollution in major urban areas. On days with pollution above certain limits, some predefined actions will be put forward. These acute actions can only be seen as short-term means. The acute actions can be lower speed limits (from December 1st in Oslo), prohibition to drive cars without catalyst, better cleaning, closing certain roads that are gravely incriminated, and datum-driving.

Alternative fuel

Alternative fuel such as biodiesel and hydrogen is a possibility to reduce waste gas in certain niches. Financial support to give incentives to use alternative fuel. Alternative fuel is typically more important locally than globally. The government has as a premise that fuel taxes should reflect the correct environmental qualities of the specific fuel type. To increase the use of alternative fuel the government financially supports research projects for the use of alternative fuel and new technology.

To avoid the problem with asphalt dust we try to convince people that winter tires without studs can be just as good as studded tires. Research has shown that this is correct on most road conditions. We have said that we will put a tax on use of studded tires unless people voluntarily stop using them. During most of the winter the streets in the cities are free of ice and snow. So far, the incentives seem to have effect, but not enough.

Developing practical responses to the continuing escalation in private motorized traffic – taking Norway's approach as a case study.

Joint National Transport plan

As mentioned, the main issues and priorities in Norwegian transport policies are presented in the annual budget.

Traditionally, we have created independent plans for roads, railways, air traffic, and sea transport. Last year, the parliament decided that we should create a national plan that covers all kinds of transport. This is a new way of thinking in Norwegian transport planning. The first of this national plan will treat the period 2002-2011. The challenges, and the goal of this plan is to consider all aspects of transport, independent of sectors, and to find the optimal allocation of means and resources. The main subject is to enable a more efficient transport system and use of resources by treating the sectors together. A main focus in the plan is transport systems in major city areas.

The Ministry of Transport and Communications has, together with the Ministry of Fisheries, started the plan process for a joint national transport plan for road, rail, air and sea transport, to be presented for the Parliament by the spring 2000.

At the central level, subjects involving other ministries, the most important being the ministries of Finance and Customs, of the Environment, Trade and Industries, Regional development and Agriculture will be incorporated in the plan, and requires contact between the ministries during the whole process.

The regional authorities are to a larger extent than previously involved in the planning process. In addition to national transport challenges reported by the public administrations, a document addressing local transport challenges will be prepared together with the county administrations, and politically treated in the counties.

The plan is a first generation joint national transport plan in Norway, and the complexity and time available suggests that the perhaps most important aim is to gather experience and highlight further efforts that must be made to achieve a more integrated national transport system.

Environment

Environmental issues are of great concern to the Norwegian government, especially within the transport sector. The basis for environmental concerns in the transport sector has been outlined in the national transport plans.

As a part of visualizing sector responsibility, Norwegian authorities aim at preparing environmental action plans for all sectors. The Ministry of Transport put forward the first of these action plans in October 1998. The plan provides an overview of the different environmental problems as well as important trends and challenges for the future in the transport sector. Included in the environmental problems dealt with here, are biological diversity, nature and culture conservation, air quality, noise and climate change, which are considered the most significant problems within the transport sector. The plan also includes a comprehensive description of possible measures to address these problems. Both financial and regulatory measures are already in use.

The Norwegian government considers a general approach to be essential in a cost-effective approach to the follow up of the Kyoto Protocol. Here, the transport sector shares responsibility along with other sectors through the CO2-tax.

In Norway, economic measures have long played an important role as an instrument in environmental policies. In addition to the above-mentioned CO2-tax, the duties on petrol and diesel, as well as the registration tax on vehicles, are high. External effects on a national level are an important basis for the construction of the vehicle taxes.

The government recently set up new national targets for particular matter, nitrogen dioxide, sulphur dioxide and benzene. These target values goes far beyond the present Norwegian limit values set in the pollution control act, but are not legally binding. The new targets also go beyond the proposed EU-directive on ambient air quality. To meet the new targets, co-operation between different policy levels, as well as between sectors is of vital importance. The authorities are also preparing a new national target for noise quality.

The next step as regards the environmental action plan is to undertake an evaluation of the plan itself, as well as the preparation process.

Road safety

The efforts to improve safety in the transport sector are integrated in the work upon the joint national transport plan. In addition to that, the Ministry is at the moment dealing with several actions to improve the road safety.

The Public Roads Administration has made a total evaluation of the Norwegian driver training programs, which for the time being is considered in the Ministry. The recommendation of the evaluation is of principal matter and further work has to be done.

The Ministries of Transport and Communications and Justice are preparing several legal actions concerning road safety and behavior in traffic to be presented to the Parliament in 1999. These are reduction in the permitted alcohol level in the blood from 0,5 to 0,2 per thousand, restrictions on the use of mobile telephones while driving and implementing a penalty point system.