The Importance Of Road Cricing

This paper discusses the credible use of marginal social cost (MSC) pricing of roads in the Europe or in United Kingdom. The purpose for using it is to develop the cost-effective efficiency of the travel currently undertaken by road users - if the use of the trip is a lesser amount of than Marginal Society Cost, society in general will be better off if the travel is not made. The basic principle underlying of efficient road user charging is that users should pay for all additional costs imposed by using the roads, added to user-borne costs of fuel and time. Current charging structures do not reflect the variation in MSC across the road network in terms of congestion and environmental cost, and at best cover only half of actual MSC. Evidence

Analysis and Evaluation

The paper lack to emphasize the deep importance of why road user should be charged every time they will use road in spite of the reason that they are all taxpayer and it is the duty of the government to spend well the money. Commoners will always argue why there should be toll every time they will use the road or why there THE ECONOMIC EFFICINECY CASE FOR ROAD USER CHARGING 2 should be road pricing. Is their tax not enough? Why there should be an externality tax? Though they emphasize reasons, still it is not more convincing. They should make a table for the users to easily understand its importance.

According to Conference of European Directors of Roads, road users usually oppose road pricing because it is felt to be an additional cost burden on top of the taxes they are already paying, as well as businesses. They usually oppose road pricing because it means higher transportation costs that levied on them which can thwart some customers from conducting business, therefore they do not buy goods and services, and demand drops.

There are two main categories for road pricing: funding and regulation.

Revenue may be extensive but the producer will think many times because of the costs embedded will greatly affect the pricing commodities. Passing the rate to the road user will greatly affect the totality of economics. It will affect in many ways. The market forces the producer to manage the cost of production by looking the least cost in expanding output.

This research shows that if users will not travel, it also gives losses, and the positive is less congestion, pollution and reduction of the wear and tear of the road maintenance. It only show that road user behavior will also affect the flow of THE ECONOMIC EFFICINECY CASE FOR ROAD USER CHARGING 4 revenue. There is a relationship between the demands of using the road to the total revenue. Personal Reaction

I am happy I am given privilege to read this kind of piece. It gives me a total perspective the importance of road pricing, because as commuter or as a road user we have this responsibility to take good care of whatever we had received. If we want to use the goods and services, we have to pay for purchase of Goods and