ROAD PRICING: THE POLITICAL AND STRATEGIC POSSIBILITIES. SYSTEMS OF ROAD INFRASTRUCTURE COST COVERAGE. REPORT OF THE 80TH ROUND TABLE ON TRANSPORT ECONOMICS, PARIS, FEBRUARY 9-10, 1989

This paper aims to assess the state of the art of road pricing theory and applications, and to provide useful guidelines for policy development. The ECMT (European Conference of Ministers of Transport) has raised two key questions: (1) why road pricing has not worked; (2) how road pricing could be enabled to work, in view of new technologies and policies on private financing and regulation. The paper considers: (1) the possible objectives of road pricing; (2) theoretical developments and policy implications; (3) practical implementation issues; (4) political attitudes to road pricing in the UK and other countries; (5) a role for road pricing; (6) a framework for the development of road pricing; (7) the effectiveness of various methods for controlling urban traffic congestion. The authors conclude that: (1) although no completely comprehensive, rational and optimal road pricing scheme has yet been implemented, there have been many important attempts to develop good second-best road pricing systems; (2) road pricing can restrain traffic levels in congested areas better than parking controls or car ownership restraint; (3) it enables higher car ownership levels in cities than would otherwise by possible; (4) it provides an indication of the economic demand for road space and a source of revenue for future transport or environmental improvements; (5) it will be most effective in conjunction with other forms of restraint. For the covering abstract of the conference see IRRD 831508.