Contents

Foreword

Preface

1 Introduction
1.1 Importance of personal mobility
1.1.1 Role of door-to-door speed
1.1.2 Public transport as an alternative?
1.1.3 Travel in rural areas
1.2 Meeting the 'need' for roads
1.3 The United Kingdom
1.4 The United States
1.4.1 Profitability of US roads
1.4.2 The federal role: power without responsibility
1.4.3 Environmental concerns
1.5 Developing countries
1.6 Commercial provision of roads?
Notes


2 Commercial management of roads
2.1 Weaknesses in roads management
2.1.1 Ownership arrangements
2.1.2 Accountability
2.1.3 Absence of pricing
2.1.4 Absence of competition
2.1.5 Absence of financial independence
2.2 US telecom as a model for commercial road system
2.3 Basic requirements of a commercial road system
2.3.1 Telecom operating companies have owners
2.3.2 Telecom companies are financially self-supporting
2.3.3 No discrimination against private sector suppliers
2.3.4 Network charges are not paid to the government
2.3.5 Interconnection
2.4 Application of the telecommunications model to roads
2.4.1 The organization of an effective road management system
2.4.2 Keeping the accounts of road corporations
2.4.3 Relationship between government and road corporations
2.5 Dedicated road funds
2.5.1 Rise and fall of the British Road Fund
2.5.2 The US federal Highway Trust Fund
2.5.3 Avoiding the errors of the traditional road funds
2.5.4 Establishing modern dedicated road funds
2.5.5 Irrelevance of the earmarked taxation controversy
2.6 Responsibility for road accidents
2.6.1 Should owners be legally liable for accidents on their roads?
2.6.2 Give insurers licensing and testing responsibilities?
2.6.3 Are governments good at making roads safer?
2.6.4 Risks to unprotected road users
2.6.5 Conclusions on road safety
Notes

3 Commercial pricing of roads
3.1 Road damage costs
3.1.1 Costs of operating roads
3.1.2 Costs of maintaining roads
3.1.3 Costs of road improvement and capacity expansion
3.1.4 Costs of constructing roads
3.1.5 Effect of axle weight on road pavements
3.2 Congestion costs
3.2.1 Calculating congestion costs
3.2.2 Is it equitable to impose congestion charges?
3.2.3 Calculating benefit-maximizing congestion charges
3.2.4 Are congestion-free roads desirable?
3.3 Accident costs
3.3.1 The magnitude of road accident problems
3.3.2 How much insurance? The costs of accidents
3.4 Pollution costs
3.4.1 The costs of pollution from motor vehicles
3.4.2 Should polluters pay?
3.4.3 Targeting polluting vehicles directly
3.4.4 Paying for automotive pollution
3.4.5 Conclusions on commercial payments for pollution
3.5 Payments of more than direct costs
3.5.1 Theoretical considerations
3.5.2 The magnitudes involved
3.5.3 Conclusion on recovering all road costs
3.6 Should road charge levels be controlled by government?
3.7 Conclusions on the commercial pricing of roads
Notes

4 Charging for road use
4.1 Requirements to be met by a road pricing system
4.2 Indirect charges for road use
4.2.1 Indirect charges: charges related to vehicle ownership
4.2.2 Indirect charges: charges related to vehicle use
4.2.3 Indirect charges: charges related to distance traveled
4.2.4 Indirect charges: supplementary licences
4.2.5 Indirect charges: shadow tolls
4.3 Direct charges for road use
4.3.1 Direct charges, registered off vehicles: conventional tolls
4.3.2 Direct charges, registered off vehicles: electronic road pricing
4.3.3 Direct charges, registered in vehicles: electronic charge cards
4.4 Recommendations for appropriate charging methods
4.5 Is congestion pricing always beneficial?
Annex to Chapter 4: Brief history of road congestion pricing
Notes

5 Commercial investment in roads
5.1 Profitability as an investment criterion
5.1.1 Comparability of investments
5.1.2 Private funding
5.2 Needs assessment as an alternative to profitability
5.3 Benefit-cost analysis as an alternative to profitability
5.4 Using the profitability criterion: dealing with profits
5.4.1 Critical importance of revenue disposition
5.4.2 Alternatives for the disposition of surplus revenues
5.4.3 Implications of allowing surpluses to remain with road providers
5.5 Using the profitability criterion: dealing with losses
5.6 What if 'returns to scale' are not 'constant'?
Notes

6 Objections to the commercial provision of roads
6.1 Would it be 'equitable' for roads to operate commercially?
6.1.1 Efficient markets do not discriminate between rich and poor
6.1.2 Disposal of congestion revenues
6.1.3 Roads should be paid for by beneficiaries, not by all taxpayers
6.1.4 Likely gainers from commercialization
6.1.5 Likely losers from commercialization
6.2 Coping with 'market failure'
6.2.1 Roads as 'natural monopolies'
6.2.2 Roads produce 'externalities'
6.2.3 Roads are not 'pure public goods'
6.2.4 Roads are not 'merit goods'
6.3 National interests
6.4 Conclusions
Note

7 Private provision of public roads
7.1 Forms of private sector participation in road provision
7.1.1 B-O-T projects
7.2 Advantages of private provision
7.3 Examples of privately provided roads
7.3.1 Some early roads, privately provided
7.3.2 More recent roads, privately provided
7.4 United Kingdom
7.4.1 The Dartford river crossing
7.4.2 The Birmingham Northern Relief Road
7.5 Continental Europe
7.5.1 France
7.5.2 Italy
7.5.3 Spain
7.5.4 Hungary
7.6 United States
7.6.1 Virginia's Dulles Greenway
7.6.2 California's SR-91
7.7 Mexico
7.8 Far East
7.8.1 China
7.8.2 Japan
7.8.3 Thailand
7.9 Objections to the private provision of roads
7.9.1 Getting the rights-of-way
7.9.2 Getting paid
7.9.3 Competition from 'free' roads
7.9.4 Uncertainty about legal liability
7.9.5 Fear of exploitation by road monopolies
7.9.6 Difficulties of interaction with public road authorities
7.9.7 Difficulty in raising finance in capital markets
7.9.8 Conclusions on objections to the private provision of roads
7.10 Conclusions on the private provision of public roads
Notes

8 Roads to the market
8.1 Reports on progress to date
8.1.1 In the United Kingdom
8.1.2 In the United States
8.1.3 In Sub-Saharan Africa
8.1.4 Conclusions on progress-to-date
8.2 Next steps
8.2.1 Bring about institutional reforms
8.2.2 Introduce 'shadow tolls'
8.2.3 Establish dedicated road funds
8.2.4 Eliminate discrimination against privately funded roads
8.2.5 Develop electronic methods of charging for road use
8.2.6 Roles of government
8.2.7 Need for working examples
Note

Epilogue: 'How to plan and pay for the safe and adequate highways we need'
Authors' introductory note

I. The Proposal: A shift to the private enterprise point of view
1. The introduction of private enterprise would be likely to lead
to a substantial increase in actual expenditure on highways

2. The provision of highways is neither too expensive nor too large-scale an activity to be conducted by private enterprises
II. Economic peculiarities of highways
1. The technical difficulty of charging for the use of roads
2. A road is in some measure a natural monopoly
3. The 'neighborhood effect' of roads
III. Practical proposals
1. Turnpikes (express roadways covering extensive distances)
2. A policy for ordinary inter-city roads
a) How to charge and how much to charge
i) What is an 'ideal' system of prices
ii) How to improve the present system
iii) Atomic age suggestions
b) How to operate the roads, given a method of charging
3. Suggestions for intra-city roads
a) Give cities their full share of motor-vehicle taxes
b) Reducing the size of administrative units
c) Privately operated throughways
d) Parking should be charged for
IV. Conclusion
Notes

References

Name index

Geographic index

Subject index


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