Road tolls and congestion charges are just two of the recommendations put forward by the OECD to help improve New Zealand’s transport system.
The end of tax breaks for company cars and carparks and less diesel vehicles are also high on its agenda, as laid out in its latest environmental performance review, Stuff reports.
The report says charges like tolls, otherwise known as road pricing, along with a better mass transit service would help improve efficiency of the transport network and reduce greenhouse gas emissions and air pollution.
“Charging tolls on major routes can also encourage more compact urban development by creating incentives for residents to relocate into the city or close to employment,” OECD environmental director Simon Upton says.
Many cities in the OECD used revenue from road tolls to finance public transport, the report says.
Legislation will be needed before tolls can be introduced on existing roads.
The report also favours higher taxes on diesel vehicles because they are generally considered to be worse polluters than petrol ones.
“There is no environmental case at all for giving a break to diesel,” Upton says.
