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Paying for the Fixed Costs of Roads

Author

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  • David Levinson

    (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)

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, gas taxes, and developer payments. The problems with each are discussed. An example looking at problems of temporal and spatial free-riding is presented.

Suggested Citation

  • David Levinson, 2005. "Paying for the Fixed Costs of Roads," Working Papers 200505, University of Minnesota: Nexus Research Group.
    • Handle: RePEc:nex:wpaper:fixedcostsofroads
    as

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    File URL: http://hdl.handle.net/11299/179931
    File Function: First version, 2007
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    References listed on IDEAS

    as
    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.
    Full references (including those not matched with items on IDEAS)

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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. 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.
    3. Shanjiang Zhu & David Levinson, 2011. "The Hierarchy of Roads, the Locality of Traffic, and Governance," Working Papers 000097, University of Minnesota: Nexus Research Group.
    4. 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.

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    More about this item

    Keywords

    Transportation financing; economics; toll roads; impact fees .;
    All these keywords.

    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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