What are the Overall Benefits of Road Pricing beyond Revenue Generation and Congestion Management?


Next Generations of Road Pricing: Social Welfare Enhancing (15 page pdf, Omid M. Rouhani, Sustainability, Mar.11, 2016)

Today we review a paper that looks beyond the two factors often used to justify road pricing: raising cash and reducing traffic congestion. Some of those factors are public acceptability, equity and the fact that only 26% of the important factors are generic- much depends on local factors that differ from one location to another – which perhaps explains why congestion pricing (and carbon taxes for that matter) are overwhelmingly accepted in places such as Stockholm and British Columbia but vigorously rejected by the public in many US and Canadian cities.

Some of the implementation decisions involve the spillover of traffic from a tolled road to its neighbours (which supports the notion of tolling existing roads and not just new ones) and then need for alternatives to road use (i.e. walking, cycling, public transit) for those who need to travel and the need for flexibility in terms of the rate to be charged and finally the need to make clear at the onset the overall benefits or welfare to the travelling public.

road pricing welfare

To see Key Quotes and Links to key reports about this post, click HERE

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