Optimal environmental road pricing

Peer Reviewed
1 January 2006

An optimal first-best road charge should not only be differentiated with respect to factors that affect the direct external environmental and time costs from the road-user himself.

Indirect effects, such as the fact that others’ cars will be more polluting when congestion increases, should also be taken into account.

 

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Sustainable Development Goals

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Publication | 1 February 2006