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Paying for the Fixed Costs of Roads

David Levinson
Journal of Transport Economics and Policy
Vol. 39, No. 3, The Economics of Cost Recovery in Transport (Sep., 2005), pp. 279-294
Stable URL: http://www.jstor.org/stable/20053969
Page Count: 16
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Paying for the Fixed Costs of Roads
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Abstract

This paper explores alternative financing mechanisms to pay for the fixed costs of roads, particularly in cases without rising marginal costs. Mechanisms considered include tolls, gasoline taxes, and developer payments. The problems with each are discussed. An example looking at problems of temporal and spatial free-riding is presented.

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