Chapter 2 Transport user charges and cost recovery
According to the celebrated cost recovery theorem, the degree of cost recovery from optimal user charges depends on the extent of scale economies in user costs, infrastructure construction costs and operating costs. This chapter presents the theorem, and reviews various generalisations of it. It then summarises empirical evidence by transport mode on the degree of scale economies or diseconomies in usage and in infrastructure, and the predicted surpluses or deficits with efficient pricing and investment. It also discusses some of the practical challenges in translating the cost recovery theorem into policy.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 19 (2007)
Issue (Month): 1 (January)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/620614/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:ucp:bkecon:9780226199993 is not listed on IDEAS
- Arnott Richard & Kraus Marvin, 1995.
"Financing Capacity in the Bottleneck Model,"
Journal of Urban Economics,
Elsevier, vol. 38(3), pages 272-290, November.
- Richard Arnott & Marvin Kraus, 1993. "Financing Capacity On The Bottleneck Model," Boston College Working Papers in Economics 222, Boston College Department of Economics.
- Erik T. Verhoef & Jan Rouwendal, 2004. "Pricing, Capacity Choice, and Financing in Transportation Networks," Journal of Regional Science, Wiley Blackwell, vol. 44(3), pages 405-435.
- Erik Teodoor Verhoef & Jan Rouwendal, 2003. "Pricing, Capacity Choice and Financing in Transportation Networks," ERSA conference papers ersa03p41, European Regional Science Association.
- Erik T. Verhoef & Jan Rouwendal, 2003. "Pricing, Capacity Choice and Financing in Transportation Networks," Tinbergen Institute Discussion Papers 03-027/3, Tinbergen Institute.
- Arnott, Richard & Kraus, Marvin, 1998. "When are anonymous congestion charges consistent with marginal cost pricing?," Journal of Public Economics, Elsevier, vol. 67(1), pages 45-64, January.
- Richard Arnott & Marvin Kraus, 1994. "When Are Anonymous Congestion Charges Consistent with Marginal Cost Pricing?," NBER Technical Working Papers 0154, National Bureau of Economic Research, Inc.
- Richard Arnott & Marvin Kraus, 1997. "When are Anonymous Congestion Charges Consistent with Marginal Cost Pricing?," Boston College Working Papers in Economics 354., Boston College Department of Economics.
- Stephen Gibson & Grahame Cooper & Brian Ball, 2002. "Developments in Transport Policy: The Evolution of Capacity Charges on the UK Rail Network," Journal of Transport Economics and Policy, University of Bath, vol. 36(2), pages 341-354, May.
- Kraus, Marvin, 1981. "Scale economies analysis for urban highway networks," Journal of Urban Economics, Elsevier, vol. 9(1), pages 1-22, January.
- Ramjerdi, Farideh & Minken, Harald & Østmoe, Knut, 2004. "10. Norwegian Urban Tolls," Research in Transportation Economics, Elsevier, vol. 9(1), pages 237-249, January.
- Mohring, Herbert, 1972. "Optimization and Scale Economies in Urban Bus Transportation," American Economic Review, American Economic Association, vol. 62(4), pages 591-604, September.
- Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
- Bichsel, Robert, 2001. "Should Road Users Pay the Full Cost of Road Provision?," Journal of Urban Economics, Elsevier, vol. 50(2), pages 367-383, September.
- William C. Wheaton, 1978. "Price-Induced Distortions in Urban Highway Investment," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 622-632, Autumn.
- Richard Arnott & An Yan, 2000. "The Two-Mode Problem: Second-Best Pricing and Capacity," Boston College Working Papers in Economics 474, Boston College Department of Economics.
- Newbery, David M, 1988. "Road Damage Externalities and Road User Charges," Econometrica, Econometric Society, vol. 56(2), pages 295-316, March.
- Rana Roy, 2005. "Optimal Pricing: The Route To A Self-Funding Infrastructure - And More," Economic Affairs, Wiley Blackwell, vol. 25(1), pages 5-11, 03.
- Keeler, Theodore E & Small, Kenneth A, 1977. "Optimal Peak-Load Pricing, Investment, and Service Levels on Urban Expressways," Journal of Political Economy, University of Chicago Press, vol. 85(1), pages 1-25, February.
- Chris Nash, 2005. "Rail Infrastructure Charges in Europe," Journal of Transport Economics and Policy, University of Bath, vol. 39(3), pages 259-278, September.
- J. A. Kay, 1979. "Uncertainty, Congestion and Peak Load Pricing," Review of Economic Studies, Oxford University Press, vol. 46(4), pages 601-611.
- Mackie, Peter, 2005. "The London congestion charge: A tentative economic appraisal. A comment on the paper by Prud'homme and Bocajero," Transport Policy, Elsevier, vol. 12(3), pages 288-290, May.
- Quinet, Emile, 2003. "Short term adjustments in rail activity: the limited role of infrastructure charges," Transport Policy, Elsevier, vol. 10(1), pages 73-79, January.
- Santos, Georgina & Li, Wai Wing & Koh, Winston T.H, 2004. "9. Transport Policies In Singapore," Research in Transportation Economics, Elsevier, vol. 9(1), pages 209-235, January.
- Newbery, David M, 1989. "Cost Recovery from Optimally Designed Roads," Economica, London School of Economics and Political Science, vol. 56(222), pages 165-185, May.
- Wilson, John D., 1983. "Optimal road capacity in the presence of unpriced congestion," Journal of Urban Economics, Elsevier, vol. 13(3), pages 337-357, May.
- Nash, Chris & Coulthard, Simon & Matthews, Bryan, 2004. "Rail track charges in Great Britain--the issue of charging for capacity," Transport Policy, Elsevier, vol. 11(4), pages 315-327, October.
- d'Ouville, Edmond L. & McDonald, John F., 1990. "Optimal road capacity with a suboptimal congestion toll," Journal of Urban Economics, Elsevier, vol. 28(1), pages 34-49, July.
- A. Michael Spence, 1975. "Monopoly, Quality, and Regulation," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 417-429, Autumn.
- Marvin Kraus, 1981. "Indivisibilities, Economies of Scale, and Optimal Subsidy Policy for Freeways," Land Economics, University of Wisconsin Press, vol. 57(1), pages 115-121.
- Russell Pittman, 2003. "A Note on Non-Discriminatory Access to Railroad Infrastructure," Industrial Organization 0303004, EconWPA.
- Heggie, Ian G. & Fon, Vincy, 1991. "Optimal user charges and cost recovery for roads in developing countries," Policy Research Working Paper Series 780, The World Bank.
- Yang, Hai & Meng, Qiang, 2002. "A note on "highway pricing and capacity choice in a road network under a build-operate-transfer scheme"," Transportation Research Part A: Policy and Practice, Elsevier, vol. 36(7), pages 659-663, August. Full references (including those not matched with items on IDEAS)