PRICING IN THE PLANNING OF TRANSPORTATION FACILITIES

If proper pricing according to marginal cost principles can be implemented, important improvements in the planning of investment are possible. In cases of daily or seasonal fluctuation in demand, less capacity will often be necessary. In some cases the optimum time for making an investment will be advanced (chiefly in new projects), but in others (particularly in additions to capacity) investment may be deferred. When future demand is uncertain, reductions in planned capacity may result by reason of the better adaptation to alternative developments that are possible with pricing. Where there are externalities, proper pricing methods or effluent charges applied according to eventual results can provide better planning or investment in pollution-abatement facilities or modifications than are likely to result from the imposition of standards. (Author)

Media Info

  • Media Type: Print
  • Features: Figures;
  • Pagination: pp 37-41
  • Monograph Title: EVALUATING TRANSPORTATION PROPOSALS
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00312464
  • Record Type: Publication
  • ISBN: 0309029864
  • Report/Paper Numbers: HS-028 846
  • Files: HSL, TRIS, TRB
  • Created Date: Oct 27 1985 12:00AM