HIGHWAY COSTS AND ROAD USER CHARGES: TOWARDS PRACTICAL EFFICIENCY

The results of a highway cost allocation exercise are presented and compared with the levels of road user taxes and charges paid for each of three vehicle classes. It is shown that significant differences exist between states in the relationship between fully-allocated costs and the level of tax paid. Heavy commercial vehicles are favoured over light commercial which are in turn favoured over private vehicles so far as direct road costs are concerned. In discussing the application of the results, it is argued that an economically efficient pricing policy would not be based on fully-allocated costs, but on avoidable, or separable,costs imposed by each vehicle. Theoretical considerations suggest that the efficient price might be below the level of separable costs. Some problems of estimation are discussed briefly in relation to the theoretical pricing system, and some comparisons made with the existing system of taxes and charges. It is concluded that the present system does not offer a good representation of the efficient prices. (a). /TRRL/

  • Supplemental Notes:
    • Proceeding of the 7th Conference of the Australian Road Research Board.
  • Corporate Authors:

    ARRB Group Limited

    500 Burwood Highway
    Vermont South, Victoria    3133
  • Authors:
    • KER, I R
  • Conference:
  • Publication Date: 0

Media Info

  • Features: References; Tables;
  • Pagination: 16 p.
  • Serial:
    • Volume: 7
    • Issue Number: 2

Subject/Index Terms

Filing Info

  • Accession Number: 00139133
  • Record Type: Publication
  • Source Agency: Transport and Road Research Laboratory (TRRL)
  • Files: ITRD, TRIS
  • Created Date: Nov 9 1977 12:00AM