THEORY OF ROAD PRICING

ECONOMIC EFFICIENCY DICTATES THAT ROAD COSTS SHOULD BE RECOVERED FROM THE USERS; ANY FINANCING OUT OF GENERAL TAXATION WOULD BE INEFFICIENT. AN EFFICIENT PRICING MECHANISMS WOULD ALLOCATE ROAD COSTS TO USERS ON THE BASIS OF ESCAPABILITY, I.E., AT THE TIME THE COST TAKES PLACE WITH MINIMUM CROSS-SUBSIDIZATION. LONG RUN COSTS WHICH ARE INDEPENDENT OF UTILIZATION SHOULD BE PAID FOR BY A LUMP-SUM PAYMENT OR ANNUAL RENT; OTHER COSTS THAT ARE A FUNCTION OF UTILIZATION SHOULD BE RECOVERED BY A VEHICLE-MILE CHARGE.

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00202470
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jun 19 1974 12:00AM