OPTIMAL PRICING: THE ROUTE TO A SELF‐FUNDING INFRASTRUCTURE ‐ AND MORE

Rana Roy

Economic Affairs, 2005, vol. 25, issue 1, 5-11

Abstract: Optimal pricing delivers not only a self‐funding infrastructure but also the additional revenues to reduce economically damaging taxes on capital, labour and final consumption. For the transport sector, this result has now been established by a concerted international research effort. Optimising prices across all modes of transport will ensure the efficient use of existing infrastructure, provide the informational base to optimise investment decisions and generate revenues in excess of both current infrastructure costs and the costs of justified investments.

Date: 2005
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