Abstract
Just as a trucker ought to be made responsible for both the pavement repair costs the truck occasions on the road authority as well as the additional vehicle operating costs and delay it engenders on subsequent vehicles, so should a motorist also be made responsible for the additional traffic delay that the automobile causes on those vehicles in the traffic stream behind it. This article presents a conceptual framework for pricing two important road use externalities — congestion and pavement wear—and discusses the policy implications of doing so. Since the analytical framework is expounded in detail in a World Bank report of mine entitled "Economic Fundamentals of Road Pricing: A Diagrammatic Analysis", only a summary will be attempted here.
The framework and policy implications discussed in this paper do not necessarily reflect the policies of the World Bank.
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Hau, T.D. (1995). A Conceptual Framework for Pricing Congestion and Road Damage. In: Johansson, B., Mattsson, LG. (eds) Road Pricing: Theory, Empirical Assessment and Policy. Transportation Research, Economics and Policy. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-0980-2_4
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