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Congestion on the Public High Ways and Its Welfare Diminishing Effects: Can Road Pricing Be Used as a Partial Solution?

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  • Şahabettin GÜNEŞ

    (Abant Izzet Baysal University)

Abstract

In this paper I analyze the economics of road pricing. In particular I examine possible congestion-reducing consequences of converting the non-toll roads to toll roads. To do that I first estimate the effect of gasoline tax hike on demand for gasoline, and then obtain resulting decrease in the number of cars used. From the estimated results we can derive two important conclusions: First, road pricing can effectively be used to diminish congestion and pollution resulting from the overuse of non-toll roads. Second, current toll fees are not high enough the discourage inefficient driving.

Suggested Citation

  • Şahabettin GÜNEŞ, 2002. "Congestion on the Public High Ways and Its Welfare Diminishing Effects: Can Road Pricing Be Used as a Partial Solution?," Ekonomik Yaklasim, Ekonomik Yaklasim Association, vol. 13(45), pages 11-20.
    • Handle: RePEc:eyd:eyjrnl:v:13:y:2002:i:45:p:11-20
    DOI: 10.5455/ey.10368
    Note: [Turkish Title] Not available [Turkish Abstract] Not available [Turkish Keywords] Not available
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