Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 168: Optimal Environmental Road pricing

Olof Johansson-Stenman ()
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Olof Johansson-Stenman: Department of Economics, School of Economics and Commercial Law, Göteborg University, Postal: Box 640, SE 405 30 GÖTEBORG

Abstract: 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 other cars will be more polluting when congestion increases, should also be taken into account.

Keywords: Road pricing; environmental costs; externalities; indirect effects

JEL-codes: Q58; R41; R48

8 pages, March 31, 2005

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