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Simple Model of Road Infrastructure Financing The Impact of Different Funding Schemes

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  • Luis Ignacio Rizzi

Abstract

This paper explores the impact of three different funding schemes on road infrastructure provision: road tolls, fuel taxes, and consumption taxes. A simple model is developed that incorporates three relevant features: fuel costs dependent on congestion, fuel efficiency, and different types of agent. The model illustrates how congestion and distributional impacts vary depending on the funding scheme. The model also shows that if fuel efficiency were fixed, fuel taxes would be a perfect substitute for road tolls, even if fuel consumption depends on congestion. © 2014 LSE and the University of Bath

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  • Luis Ignacio Rizzi, 2014. "Simple Model of Road Infrastructure Financing The Impact of Different Funding Schemes," Journal of Transport Economics and Policy, University of Bath, vol. 48(1), pages 35-51, January.
    • Handle: RePEc:tpe:jtecpo:v:48:y:2014:i:1:p:35-51
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    Cited by:

    1. 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.
    2. Andrea Lodi & Enrico Malaguti & Nicolás E. Stier-Moses & Tommaso Bonino, 2016. "Design and Control of Public-Service Contracts and an Application to Public Transportation Systems," Management Science, INFORMS, vol. 62(4), pages 1165-1187, April.
    3. Dieplinger, Maria & Fürst, Elmar, 2014. "The acceptability of road pricing: Evidence from two studies in Vienna and four other European cities," Transport Policy, Elsevier, vol. 36(C), pages 10-18.
    4. Pavón, Nicolás & Rizzi, Luis Ignacio, 2019. "Road infrastructure and public bus transport service provision under different funding schemes: A simulation analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 125(C), pages 89-105.

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