THE INEFFICIENCY OF TOLL COLLECTION AS A MEANS OF TAXATION: EVIDENCE FROM THE GARDEN STATE PARKWAY

In this paper, the cost of toll collection on New Jersey's Garden State Parkway are calculated by extending an existing model to include pollution and fuel costs. The results show that tolls are a very inefficient method of taxation versus fuel and income taxes. The authors also show that the pollution costs of toll collection are significant. These results suggest that when no mass transit alternative exists and there is no compelling need for congestion pricing, the costs of taxation and pollution can greatly be reduced by replacing tolls with either an income or fuel tax. When tolls are used, the toll road operators should be required to purchase pollution tax credits; otherwise, they are not accounting for a major cost of the toll collection process and are likely to make sub-optimal policy decisions.

• Record URL:
  https://hdl.handle.net/2027/mdp.39015058773691?urlappend=%3Bseq=365
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/7938948
• Corporate Authors:

  Eno Transportation Foundation

  1250 I Street, NW, Suite 750
  Washington, DC  United States  20005
• Authors:
  • Peters, J R
  • Kramer, J K
• Publication Date: 2003

Language

• English

Media Info

• Features: Figures; References; Tables;
• Pagination: p. 17-31
• Serial:
  • Transportation Quarterly
  • Volume: 57
  • Issue Number: 3
  • Publisher: Eno Transportation Foundation
  • ISSN: 0278-9434

Subject/Index Terms

• TRT Terms: Costs; Economic analysis; Fuel taxes; Pollution; Taxation; Toll collection; Toll roads
• Uncontrolled Terms: Income taxes
• Geographic Terms: New Jersey
• Subject Areas: Economics; Environment; Finance; Highways; I10: Economics and Administration;

Filing Info

• Accession Number: 00960781
• Record Type: Publication
• Report/Paper Numbers: HS-043 560
• Files: TRIS, ATRI
• Created Date: Jul 17 2003 12:00AM