Pricing and Cost Recovery in Long Distance Transport

Pricing and Cost Recovery in Long Distance Transport

Author: David Starkie

Publisher: Springer Science & Business Media

Published: 2012-12-06

Total Pages: 312

ISBN-13: 9400975910

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The 1977 BTE Report on Cost Recovery in Australian Transport 1974-75 provided estimates of the aggregate level of financial cos~ recovery in the various modes, by broad transport task. It suggested that there were substantial differences between modes in the level of cost recovery. The 1979 Transport Pricing and Cost Recovery seminar concluded that economic efficiency objectives required more attention 1n transport pricing and investment decisions than had been apparent in the past. The principles for economically efficient pricing were spelt out, and several specific issues were identified, which are worth following up in this seminar. These include reconciliation of financial and econom1C efficiency objectives and the identification of appropriate revenue targets; specification of the changes 1n accounting and management information systems which would be required to implement more economically rational pricing; and identification of the principles for estimating compensation for public service obligations. Finally, a brief account 18 given of recent BTE work on cost recovery in general aviation, and in road and rail transport. BTE has suggested that econom1C efficiency considerations would require substantial modification to the present means of collecting revenue from general aviation, with more reliance placed on direct pricing measures like flight-specific alr navigation charges and airport movement charges. On road-rail competition, an order of magnitude comparison of road and rail cost recovery in the Adelaide-Victorian border corridor suggests that only the road mode approximately covers short-run avoidable costs and that both modes fail to cover long-run avoidable costs.


Transport Project Evaluation

Transport Project Evaluation

Author: Elvira Haezendonck

Publisher: Edward Elgar Publishing

Published: 2008-01-01

Total Pages: 239

ISBN-13: 1847208681

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This timely book puts transport cost benefit analysis in a wider, institutional perspective, relating it in particular to decision making. The book will be of interest to practitioners, consultants and academics who are active in the evaluation of transport projects. Erik T. Verhoef, VU University Amsterdam, The Netherlands This is an important piece of work on project evaluation. An attractive feature is the balanced treatment of theory and application. The book provides very useful information on efforts of national governments in various countries to increase the quality of project evaluation studies by formulating guidelines for project evaluation. One of the strong points of the book is that it does not only address technical aspects of project evaluation tools, but also the institutional structures within which decisions are taken. Piet Rietveld, Vrije Universiteit and Tinbergen Institute, Amsterdam, The Netherlands This book revisits traditional evaluation methods, such as cost benefit analysis, to try and find a balance between the ever-increasing demand for transport, the search for sustainable mobility and green transport solutions, and the limited financial resources that governments are able to invest in transport infrastructure projects. In this respect, the effects of transport policy need to be measured and evaluated based on multiple criteria and the need to take into consideration a larger group of stakeholders and investors in transport projects. The book illustrates, methodologically and empirically, why and how the institutional and multi-actor environment impacts upon the analysis, evaluation and decision-making of transport projects in Europe. Including contributions from scholars with considerable expertise in the field, this book will be of great interest to consultants, policymakers and researchers.


Complexity and Geographical Economics

Complexity and Geographical Economics

Author: Pasquale Commendatore

Publisher: Springer

Published: 2015-02-17

Total Pages: 381

ISBN-13: 3319128051

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The uneven geographical distribution of economic activities is a huge challenge worldwide and also for the European Union. In Krugman’s New Economic Geography economic systems have a simple spatial structure. This book shows that more sophisticated models should visualise the EU as an evolving trade network with a specific topology and different aggregation levels. At the highest level, economic geography models give a bird eye’s view of spatial dynamics. At a medium level, institutions shape the economy and the structure of (financial and labour) markets. At the lowest level, individual decisions interact with the economic, social and institutional environment; the focus is on firms’ decision on location and innovation. Such multilevel models exhibit complex dynamic patterns – path dependence, cumulative causation, hysteresis – on a network structure; and specific analytic tools are necessary for studying strategic interaction, heterogeneity and nonlinearities.


Road Pricing, the Economy and the Environment

Road Pricing, the Economy and the Environment

Author: C. Jensen-Butler

Publisher: Springer Science & Business Media

Published: 2008-01-24

Total Pages: 429

ISBN-13: 3540771506

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Economic growth and globalisation create traffic growth, leading to congestion, which again increases travel times and costs. Road pricing is an instrument that may efficiently reduce the negative impacts. This volume is a collection of research papers on the use of road pricing. The focus is on passenger transport, and the papers cover a wide range of approaches, including theoretical modelling and empirical studies of road pricing experience from different cities.


Regulation of Weights, Lengths, and Widths of Commercial Motor Vehicles

Regulation of Weights, Lengths, and Widths of Commercial Motor Vehicles

Author: Transportation Research Board

Publisher: National Academies Press

Published: 2005-07-14

Total Pages: 283

ISBN-13: 030907701X

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TRB Special Report 267 - Regulation of Weights, Lengths, and Widths of Commercial Motor Vehicles recommends the creation of an independent public organization to evaluate the effects of truck traffic, pilot studies of new truck designs, and a change in federal law authorizing states to issue permits for operation of larger trucks on the Interstates. In 1991, Congress placed a freeze on maximum truck weights and dimensions. Some safety groups were protesting against the safety implications of increased truck size and weight, and the railroads were objecting to the introduction of vehicles they deemed to have an unfair advantage. Railroads, unlike trucking firms, must pay for the capital costs of their infrastructure. The railroads contend that large trucks do not pay sufficient taxes to compensate for the highway damage they cause and the environmental costs they generate. Although Congress apparently hoped it had placed a cap on maximum truck dimensions in 1991, such has not proven to be the case. Carriers operating under specific conditions have been able to seek and obtain special exceptions from the federal freeze by appealing directly to Congress (without any formal review of the possible consequences), thereby encouraging additional firms to seek similar exceptions. In the Transportation Equity Act for the 21st Century, Congress requested a TRB study to review federal policies on commercial vehicle dimensions. The committee that undertook the study that resulted in Special Report 267 found that regulatory analyses of the benefits and costs of changes in truck dimensions are hampered by a lack of information. Regulatory decisions on such matters will always entail a degree of risk and uncertainty, but the degree of uncertainty surrounding truck issues is uunusually high and unnecessary. The committee concluded that the uncertainty could be alleviated if procedures were established for carrying out a program oof basic and applied research, and if evaluation and monitoring were permanent components of the administration of trucking regulations. The committee recommended immediate changes in federal regulations that would allow for a federally supervised permit program. The program would permit the operation of vehicles heavier than would normally be allowed, provided that the changes applied only to vehicles with a maximum weight of 90,000 pounds, double trailer configurations with each trailer up to 33 feet, and an overall weight limit governed by the federal bridge formula. Moreover, enforcement of trucks operating under such a program should be strengthened, and the permits should require that users pay the costs they occasion. States should be free to choose whether to participate in the permit program. Those that elected to do so would be required to have in place a program of bridge management, safety monitoring, enforcement, and cost recovery, overseen by the federal government. The fundamental problem involved in evaluating proposals for changes in truck dimensions is that their effects can often only be estimated or modeled. The data available for estimating safety consequences in particular are inadequate and probably always will be. Thus, the committee that conducted this study concluded that the resulting analyses usually involve a high degree of uncertainty. What is needed is some way to evaluate potential changes through limited and carefully controlled trials, much as proposed new drugs are tested before being allowed in widespread use. The committee recommended that a new independent entity be created to work with private industry in evaluating new concepts and recommending changes to regulatory agencies. Limited pilot tests would be required, which would need to be carefully designed to avoid undue risks and ensure proper evaluation. Special vehicles could be allowed to operate under carefully controlled circumstances, just as oversize and overweight vehicles are allowed to operate under special permits in many states. Changes in federal laws and regulations would be required to allow states to issue such permits on an expanded network of highways, under the condition that a rigorous program of monitoring and evaluation be instituted.Special Report 269 Summary


on measuring the benefits of lower transport costs

on measuring the benefits of lower transport costs

Author: Hanan G. Jacoby

Publisher: World Bank Publications

Published: 2008

Total Pages: 33

ISBN-13:

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Abstract: Despite large amounts invested in rural roads in developing countries, little is known about their benefits. This paper derives an expression for the willingness-to-pay for a reduction in transport costs from the canonical agricultural household model and uses it to estimate the benefits of a hypothetical road project. Estimation is based on novel cross-sectional data collected in a small region of Madagascar with enormous, yet plausibly exogenous, variation in transport cost. A road that essentially eliminated transport costs in the study area would boost the incomes of the remotest households-those facing transport costs of about USD 75/ton-by nearly half, mostly by raising non-farm earnings. This benefit estimate is contrasted to one based on a hedonic approach.