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Title:

THE PRICING OF ROAD TRANSPORT SERVICES IN DEVELOPING COUNTRIES

Accession Number:

00201737

Record Type:

Component

Abstract:

THE PRICING IS DISCUSSED OF HIGHWAY TRANSPORT SERVICES UNDER THE FOLLOWING FUNCTIONS: (1) RATION AVAILABLE RESOURCES AMONG POTENTIAL USERS, (2) PROVIDE A FUND FROM WHICH THE COST OF TRANSPORT SERVICES CAN BE MET, (3) REDISTRIBUTE INCOME BY SUPPLYING COSTLY SERVICES AT LOW PRICES TO NEEDY PEOPLE, AND (4) ENABLE THE AUTHORITIES TO LEVY TAXES. THE SURVEY ATTEMPTS TO APPLY ECONOMIC PRINCIPLES THAT GOVERN THE OPTIMAL USE OF RESOURCES TO THE DETERMINATION OF THE PRICES APPROPRIATE TO ROAD TRANSPORT SERVICES. THE APPROPRIATE ECONOMIC USER CHARGES ARE CONSIDERED FOR: (1) THE HIRE OF A TRUCK, (2) THE USE OF A METERED PARKING SPACE, AND (3) THE USE OF A ROAD. THE ECONOMIC USER CHARGE WILL NOT COVER FIXED COST IF THERE IS NO CONGESTION. THE ECONOMIC USER CHARGES ARE DISCUSSED FOR UNCONGESTED ROADS. SOME ECONOMISTS HOLD THAT VARIABLE MAINTENANCE COST, BECAUSE THEY ARE THE ONLY COST ARISING FROM A JOURNEY, CONSTITUTE THE ECONOMIC USER CHARGE. OTHERS ARGUE THAT ALL MAINTENANCE COSTS SHOULD BE INCLUDED IN THE ECONOMIC USER CHARGE. ECONOMISTS APPEAR TO AGREE THAT THE ECONOMIC USER CHARGE INCLUDED THE VARIABLE MAINTENANCE COSTS AND EXCLUDES THE SUNK CONSTRUCTION COSTS. IMPLICIT IN THE ASSUMPTION THAT ROAD USERS SHOULD BE REQUIRED TO PAY ONLY THE COST ARISING OUT OF ROAD USE, AND NOT THE CAPITAL COST OF CONSTRUCTION, IS THE ASSUMPTION THAT THE CONSTRUCTION OF ROADS SHOULD BE PLANNED AND FINANCED BY A PLANNING ORGANIZATION WHICH HAS THE ABILITY TO ASSESS NATIONAL PRIORITIES AND TO EXPEND THE TAX PAYERS' MONEY ACCORDINGLY. THE CANDIDATES FOR MEETING THE COSTS OF UNCONGESTED ROADS ARE FUEL AND TIRE TAXES, THE REVENUES OF WHICH INCREASE WITH ROAD USE.

Supplemental Notes:

Paper sponsored by Committee on Socio-Economic Aspects of Highways and presented at the 48th Annual Meeting. 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.

Monograph Title:

Transportation pricing

Monograph Accession #:

01410235

Authors:

Roth, Gabriel

Pagination:

pp 5-11

Publication Date:

1969

Serial:

Highway Research Record

Issue Number: 296
Publisher: Highway Research Board

Media Type:

Digital/other

Features:

References (7) ; Tables (1)

Uncontrolled Terms:

Old TRIS Terms:

Subject Areas:

Economics; Highways; Society; Vehicles and Equipment

Files:

TRIS, TRB

Created Date:

Mar 9 1970 12:00AM

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