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Do Economists Reach A Conclusion on Road Pricing? The Intellectual History of an Idea

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  • Robin Lindsey

Abstract

My search of the economic literature did not find a soul who favours traffic jams. Moreover, I find strong consensus among economists on how to reduce traffic jams. Especially in light of modern electronic toll collection, they believe in pricing highway capacity as a scarce resource. Beyond that primary insight, however, there is much disagreement. Economists disagree over how to set tolls, how to cover common costs, what to do with any excess revenues, whether and how “losers†from tolling previously free roads should be compensated, and whether to privatize highways. These disagreements fill a lot of pages, while the main point of agreement is largely taken for granted. Practically all economists who write on the matter agree that where there is significant congestion on highways, the price should not be zero.

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  • Robin Lindsey, 2006. "Do Economists Reach A Conclusion on Road Pricing? The Intellectual History of an Idea," Econ Journal Watch, Econ Journal Watch, vol. 3(2), pages 292-379, May.
    • Handle: RePEc:ejw:journl:v:3:y:2006:i:2:p:292-379
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    More about this item

    Keywords

    Road pricing; tolls; toll collection; toll roads; turnpikes; highways; marginal-cost pricing; traffic congestion; Pigouvian taxes; economists;
    All these keywords.

    JEL classification:

    • B29 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Other
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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