Innovations in financing land transport

Abstract

The environmental impact of land transport has been widely explored in South Africa; however, implementation of mitigation is still lagging behind. Implementation of strategies requires funding. The National Revenue Fund (NRF) provides financial support for all government programs, including land transport. The allocation of funds for road infrastructure, public transportation, and transport-related research competes with other demands for service delivery funding. Section 28 of the National Land Transport Act allows municipalities to impose user charges on specific categories of motor vehicles as the need arises. Vehicle licensing can be used as one of the revenue generating methods by government. The underlying principles of vehicle licensing primarily aim to enhance road safety and, secondarily, to mitigate the carbon footprint of motor vehicles. Methods for implementing user charges are not explicitly outlined and therefore, allowing for flexibility and innovation in financing land transport. This study explores innovative ways to charge fees for the use of private transportation within Low Emission Zones (LEZs) and/or congested routes through a proficient vehicle licencing system, to reduce greenhouse gases that have a negative impact on the quality of the air. This paper aims to present the approach used to develop the fee charging technique with the use of existing vehicle data.