By Börje Johansson, Lars-Göran Mattsson
Road pricing (tolls, etc.) as a way of producing profit for infrastructure funding has turn into a big coverage alternative in either Europe and North the US. it will possibly even be used as a coverage within the administration of site visitors call for and circulation, environmental targets, and optimum source allocation as regards the dimensions of investments. highway pricing is thought with a purpose to clear up many difficulties at the same time -- congestion keep watch over, toxins relief, and funding financing.
This quantity assembles and assesses theoretical wisdom, empirical effects and reports of tangible street pricing. furthermore, the impression of recent info expertise on destiny coverage formula is taken into account.
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Extra resources for Road Pricing: Theory, Empirical Assessment and Policy
Example text
In particular, it may be desirable on second-best grounds to adjust the costs of car ownership and of the "taxation" which is currently viewed (albeit rather generally) as contributing to the recovery of road track costs. If we take the United Kingdom as an example, at present road users pay a variety of taxes (notably on fuel and in the form of an annual licence fee) which, while not hypothecated, are annually compared to the track costs of building and maintaining roads. The simple calculations made - and these are not free from considerable criticism - suggest that all categories of road users cover their allocated track costs and that several categories also contribute rather more to the Exchequer, sometimes seen as a contribution to their external costs.
The conclusion which is often drawn, therefore, is that road pricing would contain some of these adverse third party environmental effects even if it did not optimise them. There is some truth in this, but in some cases, if its application leads to excessive temporal and spatial spreading of traffic, road pricing equally could result in more environmental intrusion at times (especially early mornings and evenings) and in places (for instance, in residential areas) where only limited nuisance exists currently.
Adequate charge to cover variable maintenance and certain environmental costs. 2. Differential fuel tax In addition to type 1 this tax may reflect spatial variations in density and congestion. It causes wasteful "fuel-fetching". 3. Tax on tires and other vehicle parts Functions in the same way as type 1. BY PLACE AND TIME 4. Parking charge Can influence congestion-behaviour if charges are differentiated with respect to location and timeof-day. Does not influence through traffic 5. Supplementary licensing Functions as a cordon price mechanism and influences congestion if the latter varies considerably between zones Parking charges can be designed so as to vary for each zone with respect to time and hence to schedule-specific congestion.