Funding the infrastructure

Road traffic growth has far exceeded growth in road expenditure over the past two decades. This trend is considerably influenced by the lack of any direct linkage between road expenditure needs and funding mechanisms. Similarly, the use of road systems is not characterised by any serious attempts to apply economic pricing principles to assist efficiency in use. Funding (cost-recovery) and pricing approaches can be applied in an integrated way to improve the efficiency of resource use in the sector and close the link between expenditure and funding somewhat. Beneficiary pays approaches to charging, largely associated with user pays and encompassing charges for externalities associated with road use, are the basis of this change. Fuel charges on all vehicles, registration fees on heavy vehicles, local government internal revenue sources, congestion charges, development levies and tolls are the major funding/pricing tools available. While more work is needed to calculate just how developer levies and congestion charges might be used for road funding, the paper shows how fuel charges, registration charges and local government revenue-sources might be used to fund road expenditure at about current levels.


  • English

Media Info

  • Pagination: 105-24
  • Serial:
    • Volume: 16
    • Issue Number: 1

Subject/Index Terms

Filing Info

  • Accession Number: 01434091
  • Record Type: Publication
  • Source Agency: ARRB
  • Files: ATRI
  • Created Date: Aug 24 2012 6:03PM