PDF: 1832 KB - Bureau of Infrastructure, Transport and Regional ...

bitre.gov.au

PDF: 1832 KB - Bureau of Infrastructure, Transport and Regional ...

Chapter 5

Determining the charges

Summary

• Economic success will be influenced by the level and the structure of charges

but it ultimately depends on the cost of a scheme being less than the efficiency

gain generated.

• The viability of a scheme and the appropriate level and structure of the charges

will be determined by the characteristics of the specific location.

• There are some basic principles that, if followed, can improve the chances that

a charging system will be in the community interest.

• These include matching the level of the charge to the congestion externality

cost, and ensuring consistency between congestion charges and other

transport policy measures.

5.1 Designing successful schemes

The political success of congestion charging depends on many factors, most of which

were discussed in the last chapter. However, economic success is a separate matter: it

is the economic success that determines whether congestion charging is in the longterm

interests of the community.

Economic success depends on two key factors:

• determining the level and structure of the charges necessary to achieve an

efficient level of behavioural change

• ensuring that the cost of implementing the system is less than the efficiency gain

achieved from the charges.

The opening premise of this chapter is that it is theoretically simple to reduce

congestion through congestion charges—or essentially through any other instrument

that increases the cost of road use during congested periods. However, to produce

an outcome that is in the long-term interests of the community is a greater challenge.

101

More magazines by this user
Similar magazines