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Road User Charges in Britain

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Author Info
Newbery, David M

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Abstract

Road user charges for commercial vehicles in Britain are intended to cover their fair share of average road costs. This paper calculates the efficient road user cha rge and compares it with the allocated cost. Theory suggests that the efficient road damage charge is only 40 percent of total damage cost s, but that congestion costs may more than compensate for the shortfa ll. This is empirically confirmed for the United Kingdom, where the e fficient charge for cars is shown to exceed their allocated cost, tho ugh for heavy vehicles the two figures are similar. Accident costs ma y substantially raise the efficient costs. Copyright 1987 by Royal Economic Society.

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Publisher Info
Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 98 (1987)
Issue (Month): 390 (Supplement)
Pages: 161-76
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Handle: RePEc:ecj:econjl:v:98:y:1987:i:390:p:161-76

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  1. Muysken,J. & Sanders,M. & Zon,A.,Van, 1998. "Wage Divergence and Asymmetries in Unemployment in a Model with Biased Technical Change," Research Memoranda 023, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
    Other versions:
  2. Daniel Albalate & Germa Bel, 2008. "Motorways, tolls and road safety.Evidence from European Panel Data," IREA Working Papers 200802, University of Barcelona, Research Institute of Applied Economics, revised Feb 2008. [Downloadable!]
  3. Johansson-Stenman, Olof, 2005. "Optimal Environmental Road pricing," Working Papers in Economics 168, Göteborg University, Department of Economics. [Downloadable!]
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  4. David M. Newbery & Georgina Santos, 1999. "Road taxes, road user charges and earmarking," Fiscal Studies, Institute for Fiscal Studies, vol. 20(2), pages 103-132, June. [Downloadable!]
  5. Parry, Ian & Small, Kenneth, 2002. "Does Britain or the United States Have the Right Gasoline Tax?," Discussion Papers dp-02-12-, Resources For the Future. [Downloadable!]
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  6. Andrew Dickerson & John Peirson & Roger Vickerman, 1998. "Road Accidents and Traffic Flows: An Econometric Investigation," Studies in Economics 9809, Department of Economics, University of Kent. [Downloadable!]
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  7. Parry, Ian & Bento, Antonio, 2000. "Estimating the Welfare Effect of Congestion Taxes: The Critical Importance of Other Distortions within the Transport System," Discussion Papers dp-00-51, Resources For the Future. [Downloadable!]
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  8. Parry, Ian, 2003. "Comparing Alternative Policies to Reduce Traffic Accidents," Discussion Papers dp-03-07, Resources For the Future. [Downloadable!]
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  9. Heike Link, 2003. "Estimates of marginal infrastructure costs for different modes of transport," ERSA conference papers ersa03p75, European Regional Science Association. [Downloadable!]
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