THE ECONOMICS OF ROAD USER CHARGES

A SURVEY OF EXISTING STUDIES SHOWED NO UNIFORM RIGOROUS THEORETICAL STRUCTURE BEHIND THE MAJORITY OF STUDIES OF ROAD COSTS AND MOTOR TAXATION. EXISTING PRINCIPLES OF USER CHARGES ALSO GENERALLY FAIL TO DEAL WITH THE CONGESTION OF TOWNS AND CITIES. OF GREAT IMPORTANCE TO THE DEVELOPING COUNTRIES ARE THE RESTRICTIONS ON DEVELOPMENT OCCASIONED BY LEVYING CHARGES FOR THE USE OF THE HIGHWAY WHEN THERE ARE VIRTUALLY NO COSTS INVOLVED IN USING IT. THE MAIN TOOLS USED THROUGHOUT THE ANALYSIS ARE THOSE OF ECONOMIC AND THE PRIMARY CRITERION FOR JUDGEMENT IS THAT OF ECONOMIC EFFICIENCY. THE MAIN INSTRUMENTS ANALYZED ARE TAXES AND USER CHARGES, AND THE ROAD INVESTMENT POLICIES OF THE GOVERNMENT. THE SOLUTIONS SUGGESTED ARE SOME APPROXIMATION TO MARGINAL COST FOR PRICING AND CONSUMER SURPLUS CRITERIA FOR INVESTMENT. THE MAIN PURPOSE OF CHAPTER V IS TO MAKE AN ATTEMPT AT DEVELOPING A SIMPLE MODEL OF THE ROAD AND THE DEVELOPMENT STIMULATED THE EXTENSION OF THE ROAD INTO UNDEVELOPED TERRITORY. THE MODEL IS USED TO EXAMINE THE EFFICACY OF VARIOUS PROPOSED TAX SYSTEMS. IT IS SHOWN THAT, FOR THE PURPOSE OF FINANCING HIGHWAYS, AN EXPORT TAX COMBINED WITH A MARKET TAX IS SUPERIOR TO THE CONVENTIONAL TON-MILE OR VEHICLE-MILE TAXES. ALTHOUGH THE AVAILABLE STATISTICS ARE GENERALLY INADEQUATE, THE GENERAL CHARACTERISTICS OF VARIOUS TAXES, SOME GENERAL ORDER OF MAGNITUDE OF INCIDENCE, AND SOME PROBLEMS ARE FOUND TO BE PRESENT IN MANY COUNTRIES. IT IS SUGGEST THAT IT MAY BE ADVISABLE TO INTRODUCE A RESTRICTED LICENSE TO ALLOCATE ROAD USE IN SOME CONGESTED AREAS. THE FINAL PROBLEMS EXAMINED IN THIS STUDY ARE THOSE CONCERNED WITH THE INSTITUTIONAL AND ADMINISTRATIVE CONTROL OF ROAD EXPENDITURE AND USER TAXES, AND THEIR RE-DISTRIBUTIONAL EFFECTS. /AUTHOR/

  • Supplemental Notes:
    • Paper No 5, 243 PP
  • Corporate Authors:

    Johns Hopkins University Press

    2715 North Charles Street
    Baltimore, MD  United States  21218-4363

    World Bank

    1818 H Street, NW
    Washington, DC  United States  20433
  • Authors:
    • Walters, A A
  • Publication Date: 1968

Subject/Index Terms

Filing Info

  • Accession Number: 00201764
  • Record Type: Publication
  • Source Agency: Traffic Systems Reviews & Abstracts
  • Files: TRIS, ATRI
  • Created Date: Jun 1 1970 12:00AM