This chapter explores the feasibility and possible benefits of amending the German Heavy Goods Vehicle (HGV) motorway toll system by adopting different pricing and revenue use rules. Economic efficiency and equity effects are assessed using the MOLINO partial equilibrium model and the ASTRA system dynamics model. Acceptability issues are also addressed using the results of a survey of actors in the German haulage business. According to first-best welfare theory user charges should be set equal to social marginal costs and the revenues should accrue entirely to the state. However, acceptability and long-term development considerations militate strongly in favour of earmarking revenues to the transport sector.
