The Economics of a Single Toll Road in a Toll-free Environment

Reuben Gronau

11 citations0/0 files storedJournal of Transport Economics and Policy

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Transportation Planning and Optimization transportation and logistics systems Transport and Economic Policies

Abstract

Road-user charges have been discussed extensively in economic literature. Surprisingly, little attention has been devoted to the most common example of these charges: a toll imposed on a single road where all competing roads are free. When the level of this sub-optimal charge is determined the benefits of reduced traffic load should be balanced against the damage of diverted traffic. The desirability of a single toll is examined with respect to congestion, the supply of the free road, and travel demand.

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References

1961The Theory and Measurement of Private and Social Cost of Highway Congestion 2016Congestion Tolls Under Monopoly

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2008Private Operators and Time-of-Day Tolling on a Congested Road Network 2012Tolling and Economic Efficiency

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