Marginal Cost in Private and Public Transport

Pedro Pablo Jimenez Gomez ()
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Pedro Pablo Jimenez Gomez: Faculty of Social Sciences, UCAM-Catholic University of Murcia, Murcia, Spain

Cognitive Sustainability, 2023, vol. 2, issue 1, 3-8

Abstract: For decades, different economic theories have been trying to find an answer to determining the total costs of road transport and the best way to internalise these costs, with the most widespread answer among experts being pricing concerning marginal cost. This article presents a classification of transport costs with their corresponding mathematical functions to finally obtain the marginal cost of both public and private transport to develop an optimal pricing system. Finally, a system of equations for determining the optimal price based on the short term and under the economic premise of maximising social welfare is presented.

Keywords: Marginal cost; Road transport; Emissions; Externalities; Pricing (search for similar items in EconPapers)
JEL-codes: D24 (search for similar items in EconPapers)
Date: 2023
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DOI: 10.55343/CogSust.46

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