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Road User Charges in Britain

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  • Newbery, David M

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.

Suggested Citation

  • Newbery, David M, 1987. "Road User Charges in Britain," Economic Journal, Royal Economic Society, vol. 98(390), pages 161-176, Supplemen.
  • Handle: RePEc:ecj:econjl:v:98:y:1987:i:390:p:161-76
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    Cited by:

    1. Johansson-Stenman, Olof, 2006. "Optimal environmental road pricing," Economics Letters, Elsevier, vol. 90(2), pages 225-229, February.
    2. Dickerson, Andrew & Peirson, John & Vickerman, Roger, 2000. "Road Accidents and Traffic Flows: An Econometric Investigation," Economica, London School of Economics and Political Science, vol. 67(265), pages 101-121, February.
    3. Ian W. H. Parry & Kenneth A. Small, 2005. "Does Britain or the United States Have the Right Gasoline Tax?," American Economic Review, American Economic Association, vol. 95(4), pages 1276-1289, September.
    4. Simon Shepherd, 2008. "The effect of complex models of externalities on estimated optimal tolls," Transportation, Springer, vol. 35(4), pages 559-577, July.
    5. 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.
    6. 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.
    7. Parry, Ian W. H. & Bento, Antonio, 2002. "Estimating the Welfare Effect of Congestion Taxes: The Critical Importance of Other Distortions within the Transport System," Journal of Urban Economics, Elsevier, vol. 51(2), pages 339-365, March.
    8. Parry, Ian W. H., 2004. "Comparing alternative policies to reduce traffic accidents," Journal of Urban Economics, Elsevier, vol. 56(2), pages 346-368, September.
    9. Heike Link, 2003. "Estimates of marginal infrastructure costs for different modes of transport," ERSA conference papers ersa03p75, European Regional Science Association.
    10. Strøm, Steinar & Vislie, Jon, 2008. "A Discrete-Choice Model Approach to Optimal Congestion Change," Memorandum 09/2008, Oslo University, Department of Economics.

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