Article ID: | iaor1989985 |
Country: | United States |
Volume: | 23A |
Issue: | 6 |
Start Page Number: | 463 |
End Page Number: | 466 |
Publication Date: | Nov 1989 |
Journal: | Transportation Research. Part A, Policy and Practice |
Authors: | Johansen Frida |
Tolls are generally imposed for the purpose of raising additional net revenues. As a revenue raising device, the perception that the user pays makes tolling seem equitable; in addition, it seems suitable for revenue earmarking or for private financing and management of individual roads. However, tolls should be considered mainly as a pricing device. Tolling can complement general road user taxation (aimed at recovering costs on uncongested roads) where some degree of congestion exists, in order to achieve efficient pricing and rational resource allocation. In such cases, the revenue and the pricing objectives are compatible, and roads as private enterprises, possible. However, the possibilities of tolling congested roads are limited due to collection constraints; means other than tolling may be preferable in order to capture externalities. There is no economic justification for tolling uncongested roads, where other road user charges are already covering road use costs. If the objective is to raise general revenue, then a marginal increase overall tax rates is likely to yield a higher revenue at a lower cost. The toll road experiences in Indonesia, Malaysia, and Thailand are reviewed.