A PROPOSAL FOR A TRANSPORTATION TAX

CONGESTION IS EXCESS DEMAND AND EXCESS DEMAND IS A SIGNAL OF A POOR PRICE SYSTEM. SELLING BETTER URBAN FREEWAYS AT THE SAME PRICE AS MINIMUM SERVICE FACILITIES ONLY MULTIPLIES CONGESTION. MANY PRACTICAL DIFFICULTIES CONFRONT IMPROVEMENTS TO THE SYSTEM OF ROAD TAXATION. THE MARKET CAN BE PURIFIED IF ALL THOSE WHO BENEFIT (WITHIN A RESONABLE BOUNDARY) ARE SENSITIVE TO THE PRICING MECHANISM. 'ROAD PRICING' WOULD AFFECT THE ROAD USER, BUT LAND USERS WHO ALSO CONTRIBUTE TO THE SOCIAL COSTS OF TRANSPORT, BENEFIT CONSIDERABLY FROM TRANSPORT IMPROVEMENTS. THEIR CONTRIBUTION TO TRANSPORT IMPROVEMENTS IS, HOWEVER, QUITE INELASTIC TO THEIR BENEFITS. THIS PAPER PROPOSES A TAX DIRECTED AT THE SOCIAL COSTS OF TRANSPORT GENERATION. THE REQUIRED DATA ARE AVAILABLE AND ALREADY ACCEPTED BY NEW SOUTH WALES COURTS. THE TAX YIELD SHOULD NOT CHANGE, BUT THE DISTRIBUTION OF PAYMENTS AMONG THOSE WHO BENEFIT SHOULD IMPROVE. SOME REDISTRIBUTION OF GENERATORS MAY ALSO OCCUR - TOWARDS OPTIMUM USE OF ALL TRANSPORT FACILITIES IN THE SYSTEM. THE ORIGIN OF TAX WOULD BE A GUIDE TO WHERE THE REVENUE SHOULD BE REINVESTED TO RAISE THE STANDARD OF SERVICE TO THOSE IN CONGESTED AREAS. AS THE PRICE MECHANISM IMPROVES, FEWER RESOURCES WILL BE WASTED IN EXCESS CAPACITY, CONGESTION, SOCIAL COST OR EXCESS PROFIT AND EVERYONE WILL BE BETTER OFF. /AUTHOR/

  • Corporate Authors:

    Australian Road Research Board

    /4th Conf
    ,   United States 
  • Authors:
    • Tindall, J I
  • Publication Date: 1968-8

Subject/Index Terms

Filing Info

  • Accession Number: 00201561
  • Record Type: Publication
  • Report/Paper Numbers: Paper 445
  • Files: TRIS
  • Created Date: Oct 14 1994 12:00AM