OPTIMISATION OF LGV WEIGHT: AN ENFORCEMENT POLICY?

The purpose of this paper is to explore the apparent objectives of the heavy goods vehicle weight limits policy in the United Kingdom, and to examine the economic justification for such limits. The methods by which the economic case for such limits can be modelled are discussed. The analysis is primarily algebraic. Road freight costs are defined as the direct costs of operating all of the vehicles required to satisfy the nation's needs. This means that freight costs are equal to the sum of the freight operating costs and "externality" costs (additional road damage + enforcement costs). The government can choose to develop a strategy of enforcement that can seek either "equity" under the law, or is "efficient" in terms of the overall policy objective of minimising transportation costs. In the case of equity, then the enforcement rationale must be set so that society is fully compensated for the actions of the transgressors. If efficiency is given precedence, (exploiting economic resources in such a way that the "value" is maximised), then the strategy is less easily quantified. Analysis is carried out to illustrate the effects upon freight costs, fine levels, and of both road damage and operating costs against gross permissable weight, which would result if either strategy is adopted. For the covering abstract of the conference see IRRD 852196.