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When users of congested roads may view tolls as unjust

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  • Glazer, Amihai
  • Niskanen, Esko

Abstract

Though congestion tolls can increase social welfare, the public often opposes them. One explanation for the opposition is that a road user views a congestion toll as punishment for the damage he causes others. Since a user suffers from congestion, he believes that he has already suffered some punishment and therefore it is unfair or unjust to impose a toll in addition. We assume that a person views a congestion toll as unjust if the toll exceeds the difference between the congestion externality a road user generates on others and the uncompensated externality he suffers from others. We explore the implications of such a view. We illustrate how to determine the toll that satisfies this criterion of justice and how the socially optimal toll violates the criterion. We examine how the just toll varies with the parameters of the model. We discuss the implications of alternative definitions of justice and possible extensions of the basic model considered.

Suggested Citation

  • Glazer, Amihai & Niskanen, Esko, 2005. "When users of congested roads may view tolls as unjust," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 31, pages 6-14.
    • Handle: RePEc:sot:journl:y:2005:i:31:p:6-14
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    File URL: http://hdl.handle.net/10077/5880
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    References listed on IDEAS

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    1. Sarah F. Brosnan & Frans B. M. de Waal, 2003. "Monkeys reject unequal pay," Nature, Nature, vol. 425(6955), pages 297-299, September.
    2. Charles Raux & Stéphanie Souche, 2004. "The Acceptability of Urban Road Pricing: A Theoretical Analysis Applied to Experience in Lyon," Journal of Transport Economics and Policy, University of Bath, vol. 38(2), pages 191-215, May.
    3. Baron, Jonathan & Ritov, Ilana, 1993. "Intuitions about Penalties and Compensation in the Context of Tort Law," Journal of Risk and Uncertainty, Springer, vol. 7(1), pages 17-33, August.
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    Cited by:

    1. Wieland, Bernhard, 2006. "Special interest groups and 4th best transport pricing," Discussion Papers 1/2006, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
    2. Hoffman, Karla & Berardino, Frank & Hunter, George, 2013. "Congestion pricing applications to manage high temporal demand for public services and their relevance to air space management," Transport Policy, Elsevier, vol. 28(C), pages 28-41.
    3. de Palma, Andre & Marcucci, Edoardo & Niskanen, Esko & Wieland, Bernhard, 2005. "Introduction," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 31, pages 1-5.

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