Assessment of the Urban Freight Regulations Impact on the Transportation Cost

Abstract

The paper will investigate the impact of the vehicle carrying capacity to which the local tax is applied on forming the cost of delivery. The cost of 1 ton of freight under different tax scenarios is estimated in the paper: without tax 0, with fixed tax – 10% and with progressive tax from 0 to 75%. The greatest effect on reducing the vehicle's load capacity during urban deliveries showed a progressive tax. The developed regression model allows determining the cost of transportation of 1 ton of goods depending on the technological parameters of transport operations, the costs of the transport (logistics) operators to perform these operations, and local tax regulations for transport. The application of the model makes it possible to regulate the use of vehicles of a given capacity by the local administration. In contrast to the strict prohibition on the establishment of traffic signs, the use of a progressive tax by the local administration makes it possible to regulate traffic structure by economic methods. Exploring of influence local tax regulations on transportation will lead to the sustainability of the cities in order to provide GREEN technologies.

The Last Mile Delivery Problem: A Kenyan Retail Perspective

“…To reduce local emissions related to distribution, Ehrler, Schoder and Seidel [30] found that some e-grocery retailers had started using electric vehicles. In Ukraine, light commercial vehicles and intermediate light commercial vehicles have also been recommended for use in reducing emissions on roads [31]. This means that there exists a variety of approaches used to reduce emissions from delivery vehicles.…”