This work package will produce a brief synthesis of the conclusions of a number of studies that include important aspects for the definition of pricing schemes and respective implementation procedures.
In also includes an in-depth analysis of the reactions to the Commission Green Paper "Towards Fair and Efficient Pricing" and their repercussion in the Commission Paper on "Fair Payment for Infrastructure Use: A phased approach to a common transport infrastructure charging framework in the EU".
This analysis at European level will be complemented by national documents on transport pricing policy.

WP 2
Principles on price acceptability

The aim of this work package is to conduct a critical view on the works developed in WP1 and to present a sound theoretical basis for the work to be developed in the other work packages.
In the first place the concepts and definitions of efficient pricing and costs will be analysed. This includes the distinction between efficiency, distributional and financial aspects as well as concepts such as full costs and marginal costs. The task will also deal with the discussion and definition of efficient first-best and second-best pricing principles, taking into account the implications of negative and positive external effects and, consequently, arguments for public transport prices below marginal cost where car drivers are under priced.
A second aim of this work package includes the discussion of the legal, regulatory and political dimensions of transport pricing, including social and fairness aspects. Finally the technical systems that support the implementation of pricing schemes will be analysed.

WP 3
Empirical studies on price acceptability

Empirical exercises will be conducted in this work package in a three-step approach.

• Key Informant Surveys with main agents of the transport system (politicians at different levels, authorities and operators) in order to tap the knowledge and experience of those familiar with the acceptance/non-acceptance problem.
• Citizens’ Views through a set of interviews with focus on the development of acceptable policy packages and their necessary institutional frameworks. In parallel with the citizens work group discussions (focus groups) will be held about the issues raised in the survey work to gauge the dynamic of the public discussion about tolling and road pricing, which can be quite different from the decisions taken in the context of individual interviews.
• Quick Delphi Survey to test and assess the preferred packages identified in the previous tasks with decision-makers from several countries and different decision levels.

This work package will provide the input for the conclusions of the research by designing alternative solutions for pricing schemes and related policy packages.
In the first place it consists in quantitative analysis of efficient pricing schemes aimed at illustrating the financial effects of a supposed efficient and practical urban car and public transport pricing scheme (bus mode) as well as long distance modes. They are also aimed at showing the impact, from the distributional point of view, of price differentiation related with variations in the level of quality of the service of public transport. The design of the new solutions will then consider the specificity of the different types of transport (urban and long distance) and modes as well as the object of the pricing scheme and respective compensatory trade-offs. Finally, the design of new schemes will also consider that pricing policies are a tool for mobility management.

WP 5
Transport pricing strategies

This work package of synthesis will gather the results achieved in the other work packages.
It tries to identify the most appropriate pricing schemes for the different regulatory frameworks, considering that different agents perform different roles within the levels of planning and control of a transport system.
This implies an assessment of the appropriateness of each pricing scheme with relation to these aspects, identifying advantages and disadvantages in each case.
Finally the conclusions and recommendations of the PATS research will be presented addressing the main issues that form the decision structure underlying the implementation of transport pricing strategies.
For each of these issues the main alternative choices available will be clearly explained, and pointed out their weaknesses and strengths in terms of potential for acceptability and conditions for implementation in the different regulatory and organisational environments (including transition paths).