EVERYTHING HAS ITS PRICE: THE SOCIO-ECONOMIC COSTS OF ROAD USER CHARGING

The economic principles of road user charging are discussed. The consequences of various road user charging policies in the UK were modelled. The links between speed, congestion and varying pricing are considered and the benefits of shifting the burden of taxes and charges away from fixed taxes such as the tax disc towards charges that vary with usage are discussed. Possible scenarios for change include a revenue-neutral package distributing traffic away from congested times and places or the introduction of economically efficient charges. The implications of road user charging for politicians are considered.