ROAD COSTS AND MARGINAL COST PRICING

questions have been raised about a shortage of infrastruture investment as a possible cause of the decline in the productivity of the Canadian economy. IN the specific context of highway infrastructure, two different theses promoting this idea were often mentioned, the first being the "under built" thesis (were pavements designed with less than optimal strength?) and the second one, the "under maintained" thesis (we are not spending enough on our roads to maintain them). As data on the stock of infrastructure are not easily available, especially for the road component, researchers are unable to address directly the validity of these questions. However, there is another avenue which, in the long term, can shed some light on the issue. If charges for the use of the road (road prices) are set efficiently (marginal social cost of road use), road users will reveal their preferences and - assuming the appropriate institutional arrangements linking prices to investments - over the long term the optimal amount of money will be spent on roads. This paper summarizes work for the Royal Commission on National Passenger Transportation in which the authors partially addressed this issue. For the covering abstract of this conference, see IRRD number 872510. (A)

Language

  • English

Media Info

  • Pagination: p. 373-385

Subject/Index Terms

Filing Info

  • Accession Number: 00726282
  • Record Type: Publication
  • Source Agency: Transportation Association of Canada
  • Files: ITRD
  • Created Date: Oct 28 1996 12:00AM