The theoretical benefits derived from the introduction of road pricing are considered and attention is focussed on the treatment of the social gains associated with urban road investment as estimated in the cost-benefit framework. It is noted that in considering road pricing policy the distinction between perceived and unperceived costs is not made, and it is assumed that motorists are aware of all private costs. A basic geometric model is used to illustrate this approach. The effects of the marginal unperceived private costs and the marginal perceived private costs are discussed. It is shown that greater social benefits accredited to the former than is currently the case. It is necessary in both instances to allow for the misconceptions of motorists when estimating future traffic flows but to assess all benefits and costs in resource terms once these flows have been determined.

  • Authors:
    • BUTTON, K J
  • Publication Date: 1976-4

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Filing Info

  • Accession Number: 00142981
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Dec 22 1976 12:00AM