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Assessing the Effects of Road Pricing on an Industry: The Grain Handling and Transportation System in Saskatchewan

Author

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  • Larson, Eric K.
  • James, Nolan F.

Abstract

This research evaluates the merits of road pricing scenarios affecting a single industry almost exclusively – grain movement on the rural road network in the west central region of the Canadian province of Saskatchewan. Policies in the Canadian grain handling and transportation industry have led to increased use of rural roads, accelerating road deterioration in the region. Using a simulated optimization framework to compare road pricing schemes, we find that a policy of differential road pricing based on known road maintenance costs generates the lowest total social costs. The differences between the simulated social costs in the pricing scenarios are surprisingly small.

Suggested Citation

  • Larson, Eric K. & James, Nolan F., 2007. "Assessing the Effects of Road Pricing on an Industry: The Grain Handling and Transportation System in Saskatchewan," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 46(3).
    • Handle: RePEc:ags:ndjtrf:206895
    DOI: 10.22004/ag.econ.206895
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    References listed on IDEAS

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    1. Babcock, Michael W. & Bunch, James L. & Sanderson, James & Witt, Jay, 2003. "Impact of Short Line Railroad Abandonment on Highway Damage Costs: A Kansas Case Study," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 42(4).
    2. Heaps, T & Munro, J M & Wright, C S, 1992. "A Location Model of Grain Production and Transportation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 26(2), pages 111-134, June.
    3. Casavant, Kenneth L. & Lenzi, J.C., 1990. "Preparing for Rail Line Abandonment: Prediction of Financial and Locational Impacts on Roads," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 30(2).
    4. Babcock, Michael W. & Bunch, James L. & Sanderson, James & Witt, Jay, 2003. "Impact of Short Line Railroad Abandonment on Wheat Transportation and Handling Costs: A Kansas Case Study," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 42(4).
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    Cited by:

    1. Sichao Jiang & James Nolan & Wesley W. Wilson, 2022. "Exit Decisions in the Canadian Grain Elevator Industry," Journal of Industry, Competition and Trade, Springer, vol. 22(1), pages 1-19, March.

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    Public Economics;

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