00474892

Component

http://onlinepubs.trb.org...trr/1987/1107/1107-013.pdf

https://scholar.google.co...nsen&publication_year=1987

From the economic point of view, tolling is an instrument that can be uniquely suited to the collection of efficient road use prices. Because they affect resource allocation, toll rate levels need to be considered when decisions are made about the appropriateness of a toll scheme. It is argued that tolling (at rates above marginal costs) is equitable--those who benefit should pay--but beneficiaries may not pay in full or at all if they are not users of the toll road. Nevertheless, tolls are generally imposed for the purpose of raising additional net revenue, and they appear to be a suitable instrument if the object is revenue earmarking or private financing and management of roads. However, investment lumpiness and increasing returns make roads a commercially viable enterprise only occasionally. Means other than explicit tolls may be better for attracting private intervention. High associated costs are a disadvantage of tolling; in some cases the cost of distortions introduced by tolling may make incompatible the objectives of revenue generation and efficient resource allocation. It is important to ensure that effects on the economy at large, not only on the toll agency, are included in toll road analysis. This is not generally done and is the reason for this paper. There are, however, a number of conditions under which tolling may be appropriate (i.e., not worsen resource allocation or even improve it over untolled roads despite higher costs inevitably entailed in tolling with current technologies). Examples of results from tolling in two developing countries are provided. In this paper only tolling of interurban roads is discussed.

Publication of this paper sponsored by Committee on Application of Economic Analysis to Transportation Problems. Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved.

01418063

pp 80-84

1987

Transportation Research Record

0309044553

Print

Costs; Developing countries; Private enterprise; Resource allocation; Toll roads

Highway economics

Economics; Finance; Highways; Planning and Forecasting; Society; I10: Economics and Administration

TRIS, TRB

Oct 31 1987 12:00AM

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