2014•RePEc: Research Papers in EconomicsRequires access

Road pricing: An overview

Omid M. Rouhani

Abstract

This paper offers a general overview of the road pricing concept. It first examines the common objectives used in road pricing, namely (a) congestion reduction; (b) raising profits; (c) social welfare maximization; etc. Then, it explores various types of road pricing, including two major ones: (1) road tolls and (2) congestion pricing charges. Next, general modeling approaches used for estimating the impacts of road pricing are discussed. Finally, the paper concludes with a checklist explaining how to promote a successful road pricing scheme.

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Available abstract

Key concepts: Road pricing, Singapore Area Licensing Scheme, Congestion pricing, Investment theory, Utility maximization, Social Welfare, Maximization, Variable pricing