Road pricing—some of the more neglected theoretical and policy implications

Summary

The intention of this paper has been to raise some doubts about the extent to which the control of congestion is understood, not as an engineering problem, but as a socio‐economic one concerned with making the most appropriate use of scarce resources.

Despite some doubts, it seems that the basic theory, as applied to a highly simplified situation, is technically correct. What is much less clear, however, is the extent to which the acceptance of this analysis as a basis for policy making in the real world is justified. Even if, qualitatively, its implications are correct, there are significant quantitative uncertainties. Given that governments, local and national, are still pouring considerable sums of money, both through subsidies and investment, into the relief of congestion, it is desirable to change this state of affairs. There seems to be ample scope for the transport economist, the transport planner and the transport engineer to contribute to a debate which has a long and, in places, distinguished pedigree, but where the outcome is as yet considerably outstripped by the importance and complexity of the problems which must be solved.

The authors would like to acknowledge the partial funding of the SSRC for the project from which this paper is drawn.

Notes

The authors would like to acknowledge the partial funding of the SSRC for the project from which this paper is drawn.