THE PRICING OF ROAD TRANSPORT SERVICES IN DEVELOPING COUNTRIES

THE PRICING IS DISCUSSED OF HIGHWAY TRANSPORT SERVICES UNDER THE FOLLOWING FUNCTIONS: (1) RATION AVAILABLE RESOURCES AMONG POTENTIAL USERS, (2) PROVIDE A FUND FROM WHICH THE COST OF TRANSPORT SERVICES CAN BE MET, (3) REDISTRIBUTE INCOME BY SUPPLYING COSTLY SERVICES AT LOW PRICES TO NEEDY PEOPLE, AND (4) ENABLE THE AUTHORITIES TO LEVY TAXES. THE SURVEY ATTEMPTS TO APPLY ECONOMIC PRINCIPLES THAT GOVERN THE OPTIMAL USE OF RESOURCES TO THE DETERMINATION OF THE PRICES APPROPRIATE TO ROAD TRANSPORT SERVICES. THE APPROPRIATE ECONOMIC USER CHARGES ARE CONSIDERED FOR: (1) THE HIRE OF A TRUCK, (2) THE USE OF A METERED PARKING SPACE, AND (3) THE USE OF A ROAD. THE ECONOMIC USER CHARGE WILL NOT COVER FIXED COST IF THERE IS NO CONGESTION. THE ECONOMIC USER CHARGES ARE DISCUSSED FOR UNCONGESTED ROADS. SOME ECONOMISTS HOLD THAT VARIABLE MAINTENANCE COST, BECAUSE THEY ARE THE ONLY COST ARISING FROM A JOURNEY, CONSTITUTE THE ECONOMIC USER CHARGE. OTHERS ARGUE THAT ALL MAINTENANCE COSTS SHOULD BE INCLUDED IN THE ECONOMIC USER CHARGE. ECONOMISTS APPEAR TO AGREE THAT THE ECONOMIC USER CHARGE INCLUDED THE VARIABLE MAINTENANCE COSTS AND EXCLUDES THE SUNK CONSTRUCTION COSTS. IMPLICIT IN THE ASSUMPTION THAT ROAD USERS SHOULD BE REQUIRED TO PAY ONLY THE COST ARISING OUT OF ROAD USE, AND NOT THE CAPITAL COST OF CONSTRUCTION, IS THE ASSUMPTION THAT THE CONSTRUCTION OF ROADS SHOULD BE PLANNED AND FINANCED BY A PLANNING ORGANIZATION WHICH HAS THE ABILITY TO ASSESS NATIONAL PRIORITIES AND TO EXPEND THE TAX PAYERS' MONEY ACCORDINGLY. THE CANDIDATES FOR MEETING THE COSTS OF UNCONGESTED ROADS ARE FUEL AND TIRE TAXES, THE REVENUES OF WHICH INCREASE WITH ROAD USE.

Media Info

  • Media Type: Print
  • Features: References; Tables;
  • Pagination: pp 5-11
  • Monograph Title: Transportation pricing
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00201737
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Mar 9 1970 12:00AM