Abstract
Road user charges for commercial vehicles in Britain are intended to cover their fair share of average road costs. This paper calculates the efficient road user cha rge and compares it with the allocated cost. Theory suggests that the efficient road damage charge is only 40 percent of total damage cost s, but that congestion costs may more than compensate for the shortfa ll. This is empirically confirmed for the United Kingdom, where the e fficient charge for cars is shown to exceed their allocated cost, tho ugh for heavy vehicles the two figures are similar. Accident costs ma y substantially raise the efficient costs. Copyright 1987 by Royal Economic Society.
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