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Estimation of the marginal cost of road wear as a basis for charging freight vehicles

Author

Listed:
  • Martin, Tim C.
  • Thoresen, Thorolf R.

Abstract

In Australia one option for improved freight vehicle productivity, as part of major road reform, is increasing the allowable freight vehicle axle loads above current load limits and reduce the transport cost per tonne-km. This can also potentially reduce greenhouse gas (GHG) emissions by reducing the number of freight vehicle movements for a given freight task. Decisions regarding increased axle loads on the existing road infrastructure can be founded on the marginal cost of road wear as the basis of a price for increasing axle loads. These prices can provide a clear signal for targeting maintenance and rehabilitation funding and works provided the revenue raised by the price is directly linked to the funding.

Suggested Citation

  • Martin, Tim C. & Thoresen, Thorolf R., 2015. "Estimation of the marginal cost of road wear as a basis for charging freight vehicles," Research in Transportation Economics, Elsevier, vol. 49(C), pages 55-64.
    • Handle: RePEc:eee:retrec:v:49:y:2015:i:c:p:55-64
    DOI: 10.1016/j.retrec.2015.04.006
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    References listed on IDEAS

    as
    1. Productivity Commission, 2006. "Road and Rail Freight Infrastructure Pricing," Inquiry Reports, Productivity Commission, Government of Australia, number 41.
    2. Newbery, David M, 1988. "Road Damage Externalities and Road User Charges," Econometrica, Econometric Society, vol. 56(2), pages 295-316, March.
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    More about this item

    Keywords

    Heavy vehicle charging; Load wear costs; Marginal wear cost; Life-cycle costs; Freight productivity;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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