By Andre de Palma, Robin Lindsey, Stef Proost
Shipping infrastructure advancements will count more and more at the point of consumer fees. One cause is the continuing liberalization of the european shipping region, in particular for air and rail. one other is the craze in the direction of enforcing tolls and different person fees on roads. it really is anticipated that consumer fees will steadily exchange govt subsidies for infrastructure growth and upkeep. sales from consumer fees can also be used to go subsidize different shipping modes. the excess expected on city roads may be used to fund infrastructure and operation of public delivery and/or non-urban roads.This ebook brings jointly either the idea and the present perform of person fees, tolls and profit use in eu international locations. It examines public finance elements equivalent to earmarking, in addition to public administration facets of other pricing and profit use ideas. a suite of directions is built for a greater use of toll and tax sales. The set of guidance is verified with a brand new expense profit instrument in case experiences that conceal France, Germany, Norway , Switzerland and the UK.Research in Transportation Economics is now on hand on-line at ScienceDirect - full-text on-line of volumes 6 onwards.
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Additional info for Research in Transportation Economics: Investment and the use of Tax and Toll Revenues in the Transport Sector, Vol. 19 (2007)
11. For a general discussion of the economic approach to transport pricing, see the textbook by Small and Verhoef (2007). Investment and the Use of Tax and Toll Revenues 23 12. See the discussion by Quinet (2001). 13. g. g. Nowlan, 1993; Verhoef 2002). 14. Cf. Dupuit (1849): ‘‘y depuis la suppression du pe´age, la circulation avait de´cuple´ y cette donne´e d’expe´rience me paraıˆ t sufﬁre pour pre´senter la question du re´tablissement du pe´age y’’. 15. See, inter alios, Quinet and Vickerman (2004), Leruth (2006) and Vickerman (2006).
2, if capacity is lumpy, the cost recovery formula is inapplicable because capacity cannot be chosen optimally at the margin. 11 The capacities of other links do not have to be optimal (either because of indivisibilities or for other reasons). Optimal pricing is necessary for the CRT to hold, and this generally requires that charges vary across links. The practicality of differentiation depends on the transport mode and on circumstances. As far as road pricing is concerned, it is not technologically difﬁcult to set different tolls on different links, or at least to differentiate tolls by type of link as Singapore does with its electronic road-pricing system.
1). The monopolist sets a price above the ﬁrst-best level by a markup that reﬂects market power. 1 as a case of secondbest optimal capacity given distorted pricing. There is a strong presumption that cost recovery for the monopolist will exceed the ﬁrst-best level. 8. Uncertainty Transport infrastructure is subject to uncertainty about construction costs, capacity availability and demand for usage. Major construction cost overruns are common (Flyvbjerg, Bruzelius, & Rothengatter, 2003). And once a facility is operational, available capacity can ﬂuctuate unpredictably due to accidents, mechanical breakdowns, bad weather and so on.