Methods for Allocating Highway Costs
Methods for Allocating Highway Costs
Microeconomic theory and other concepts related to pricing are reviewed and applied to the problem of designing highway user charges. In view of the emphasis in the Congressional request for the Highway Cost Allocation Study on setting charges in accordance with costs occasioned, economic efficiency should be a major study goal. The goal of equity, whichever of its many meanings that term may have, remains an important consideration but not one which provides direct guidance for user charges. In regard to highway transportation, efficiency and equity do not appear to conflict in any significant ways. Efficient user charges are based on variable costs, primarily pavement damage, vehicle interference, and negative external costs.
Document information
Methods for Allocating Highway Costs
1981
86 pages
Report
No indication
English
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