The Economic Advantages of Toll Roads
Although many people view toll charges as a hassle and just one more thing the government do to take every penny we have, there are many benefits that come with toll road charges that not many people notice.
Many economists and transportation experts see that toll roads offer a solution to our road transportation problems. Toll charges benefit road transportation because...
Firstly, toll charges are much fairer than other types of methods to reduce traffic congestion. The users of toll charges pay in proportion to their use and the distance that they travel along the road. This is much fairer than schemes like the Congestion Charge, where the price is implemented and the users pay for the cost of their journey (congestion-loss of time, wasted energy, etc.)
Although many people view toll charges as a hassle and just one more thing the government do to take every penny we have, there are many benefits that come with toll road charges that not many people notice.
Many economists and transportation experts see that toll roads offer a solution to our road transportation problems. Toll charges benefit road transportation because...
Firstly, toll charges are much fairer than other types of methods to reduce traffic congestion. The users of toll charges pay in proportion to their use and the distance that they travel along the road. This is much fairer than schemes like the Congestion Charge, where the price is implemented and the users pay for the cost of their journey (congestion-loss of time, wasted energy, etc.)
Secondly, also they make the roads more efficient. When toll roads are used to reduce congestion through charges that reflect current utilisation, it sends signals to consumers about the full cost of using the road. This includes costs other than damage costs, but also the costs imposed by an additional driver on the travel speed 
of all other drivers.
of all other drivers.Thirdly, toll charges reduce urban sprawl. Urban sprawl or congestion is the direct result of under-pricing of roads. If drivers were required to pay the true cost of using a road or a motorway, there would be less incentive to keep driving and more people would either take public transport, or move their location that they travel to closer (e.g., work from home).
Fourthly, the toll road charge increases fuel economy. This is so because by increasing the overall capacity of a region’s transportation system, toll roads are able to absorb some of the traffic that would otherwise use non-toll highways and interstates. The result is a decrease in overall traffic congestion. Vehicles on both toll and non-toll roadways are able to move at more fuel efficient speeds.
Fifthly, according to studies, the accident rate on toll roads is lower than other roads, because the flow of traffic is more even.
Finally the toll road charges help with the financing of new facilities. If congestion rises, prices rise and that provides a signal for expansion of facilities. In such situations bond financing can be raised to pay for the project, with the future toll collections used as collateral.
One of the most well known toll roads in the UK is the M6 toll road which runs past Birmingham. http://www.bbc.co.uk/birmingham/travel/m6-toll-rd.shtml
Here is a video on how Russia are planning to use toll roads to help their congestion problems on their motorways. http://rt.com/Business/2008-11-21/New_road_agency_to_free_up_Russias_transport_routes.html
One of the most well known toll roads in the UK is the M6 toll road which runs past Birmingham. http://www.bbc.co.uk/birmingham/travel/m6-toll-rd.shtml
Here is a video on how Russia are planning to use toll roads to help their congestion problems on their motorways. http://rt.com/Business/2008-11-21/New_road_agency_to_free_up_Russias_transport_routes.html
I think toll roads can be a good idea in certain places but:
ReplyDeleteSome toll roads definitely exploit consumers by charging ridiculously high prices (they often rise at peak times so it's difficult to know what you are going to have to pay until you get there) and, as they don't really have an alternative, consumers are forced to pay. My family regularly go on driving holidays in an RV and I know that certain Pay-ages in France, and often on borderlines (like between Switzerland and France), they can charge an absolute fortune and I don't really think they are helping with congestion in this instant because the majority of the people having to pay are lorry drivers who simply have to pay, so it seems they are just doing it for the extra revenue which seems pretty unfair.
Also, toll roads can be quite unfair because they just ration the direct, useful roads for those who can afford it. Those who can afford it save time and money on petrol (and they are travelling to their destination more directly), so the rich will get richer. Those who can't afford toll roads will have to spend extra time travelling to the location by driving on an alternative, less direct road and they will have to pay more in petrol - so technically the rich are getting richer whilst the poor are getting poorer, which isn't really ideal :) xx
while i think toll roads are the way forward, i would say that a problem with toll roads is that they shift congestion from one route to another, therefore just making the same or more traffic elsewhere. Also, it is highly inconvenient for the consumer, who may use the road to get to work each morning. They might be late every day and not have any other route they can use because of the queueing at the tolls. This could lead to loss of jobs and even an econmically deprived area because some people who travel to a city in the morning from a rural location may move to the city and leave poorer people in the countryside to travel through the toll roads. Toll roads lead to the poorer people paying and the rich relocating.
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ReplyDeleteOk, so toll road prices are extortionate, however, the benefits of toll roads exceed the private benefits. Because of toll roads, there is less noise pollution, air pollution, and congestion - meaning a more pleasant experience for those perhaps working or living around the area. It seems the only way to get motorists off the road is by charging them for the use of their vehicle, and with the rising problem of climate change, toll roads seem necessary to ration scarce resources.
ReplyDeleteguys, guys, guys! I completely disagree with your theory that charging motorists to drive is the way to cut pollution. Making public transport more appealing to consumers is the most practical and efficient way to stop drivers from driving. The reason many people still drive is because the see the opportunity cost of taking the public transport as too great. If the government were to make public transport better and more affordable, there is no doubt that drivers will switch to public transport as a means of travel. On the other hand, I am fairly optimistic about this because the government gain a lot of money from oil tax.
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