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Paying for the Fixed Costs of Roads

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  • David Levinson

Abstract

This paper explores alternative financing mechanisms to pay for the fixed costs of roads, particularly in cases without rising marginal costs. Mechanisms considered include tolls, gasoline taxes, and developer payments. The problems with each are discussed. An example looking at problems of temporal and spatial free-riding is presented. © 2005 LSE and the University of Bath

Suggested Citation

  • David Levinson, 2005. "Paying for the Fixed Costs of Roads," Journal of Transport Economics and Policy, University of Bath, vol. 39(3), pages 279-294, September.
    • Handle: RePEc:tpe:jtecpo:v:39:y:2005:i:3:p:279-294
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    References listed on IDEAS

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    1. Baer, Christopher T. & Klein, Daniel B. & Majewski, John, 1992. "From Trunk to Branch: Toll Roads in New York, 1800-1860," University of California Transportation Center, Working Papers qt9pv183b2, University of California Transportation Center.
    2. David M. Levinson, 2002. "Financing Transportation Networks," Books, Edward Elgar Publishing, number 2308.
    3. Fielding, Gordon J. & Klein, Daniel B., 1993. "How To Franchise Highways," University of California Transportation Center, Working Papers qt79z9x6fs, University of California Transportation Center.
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    Cited by:

    1. Fullerton, Thomas M., Jr. & Mukhopadhyay, Somnath, 2013. "Border Region Bridge and Air Transport Predictability," MPRA Paper 59583, University Library of Munich, Germany, revised 11 Jul 2013.
    2. Linfeng Li & Miyuan Shan, 2016. "Bidirectional Incentive Model for Bicycle Redistribution of a Bicycle Sharing System during Rush Hour," Sustainability, MDPI, vol. 8(12), pages 1-15, December.
    3. Yarmukhamedov, Sherzod & Smith, Andrew S.J. & Thiebaud, Jean-Christophe, 2020. "Competitive tendering, ownership and cost efficiency in road maintenance services in Sweden: A panel data analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 136(C), pages 194-204.
    4. Shanjiang Zhu & David Levinson, 2011. "The Hierarchy of Roads, the Locality of Traffic, and Governance," Working Papers 000097, University of Minnesota: Nexus Research Group.

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    More about this item

    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • D10 - Microeconomics - - Household Behavior - - - General
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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