Economic impact of the introduction of the German HGV toll system

After a long period of political debate and technological difficulties, the German heavy goods vehicle (HGV) toll system was finally put into operation in January 2005. This paper is divided into two main parts. The first section discusses the German HGV toll in detail, with a focus on fee calculation. This is followed by an analysis of the macro-economic impact of the toll. Based on an input-output model for the German economy involving 70 distinct industries, undesirable potential price increases are considered along with potential positive employment effects which can be expected if the toll revenue re-enters the economy.