ECONOMIC ISSUES INHERENT IN THE ALLOCATION OF ROADWAY COSTS

Roadway cost allocation is an analysis step which can be applied in the development of equitable, cost based user charges or taxes for roadway use. Typically, roadway cost allocation is intended to insure that each vehicle class will contribute its equitable share of expenditures. An alternative to user charges based on allocated cost is a set of charges based upon short run marginal costs. This pricing policy would maximize net social benefits, but there are numerous practical problems in its implementation. This paper introduces the process of cost allocation and discusses several economic issues inherent in the process, and considers the practicality of theoretically efficient prices.

• Supplemental Notes:
  • Sponsored in part by Federal Highway Administration, Washington, DC. Office of Program and Policy Planning.
• Corporate Authors:

  Carnegie Mellon University

  Department of Civil and Environmental Engineering
  5000 Forbes Avenue
  Pittsburgh, PA  United States  15213

  Federal Highway Administration

  Office of Program and Policy Planning, 1200 New Jersey Avenue, SE
  Washington, DC  United States  20590
• Authors:
  • Hendrickson, C
  • Wohl, M
  • McNeil, S
• Publication Date: 1981-9

Media Info

• Pagination: 110 p.

Subject/Index Terms

• TRT Terms: Cost allocation; Cost estimating; Economic factors; Equity; Estimates; Fees; Highway planning; Highway transportation; Highway user taxation; Highways; Prices; Rates; Revenues; Roads; User charges
• Old TRIS Terms: Allocations; Rates costs
• Subject Areas: Economics; Finance; Highways; Society; I10: Economics and Administration;

Filing Info

• Accession Number: 00364823
• Record Type: Publication
• Source Agency: National Technical Information Service
• Files: NTIS, TRIS, USDOT
• Created Date: Apr 28 1982 12:00AM