Article ID: | iaor1997217 |
Country: | United States |
Volume: | 29A |
Issue: | 6 |
Start Page Number: | 459 |
End Page Number: | 465 |
Publication Date: | Nov 1995 |
Journal: | Transportation Research. Part A, Policy and Practice |
Authors: | Verhoef Erik |
This paper contains a comment on an article by Professor Lave, recently published in this journal. Lave’s approach towards analyzing the political feasibility of road pricing is challenged on several grounds. In a simple setting, where individual road users are identical in terms of private cost of driving and valuation of time, Lave’s approach is seen to be, although less clear, in essence equivalent to the traditional textbook analysis. In a more complex setting, where differences across individuals are allowed for, his approach is seen to suffer from lacking recognition of differences in individual marginal utilities of income.