ROAD PRICING

Road Pricing



Road Pricing

Introduction

Transportation has become the major part of the human lives and the economy of the country. It also supports the production material, non-productive activities and meets the need of the population and play the major role in the creation of the national product. There are main reasons why the transport developed and why it has huge importance not only from country perspective but also from citizen perspective. This transportation runs on road which should be properly organized as uneven roads or crowded areas create problems for drivers to arrive at the spot on time. This paper will focus on the Road pricing, critical analysis and logical evaluation on this topic.

Discussion

Industries requires huge amount of raw materials for their production or sending finished goods from the factory in the city consist of huge and heavy busses, trucks and eighteen wheeler truck. These vehicles are so big that they cannot be run on normal roads. For this purpose, special roads are constructed where only such type of vehicles are allow to go, moreover, some time, a normal vehicle can also avail this road but has to pay certain amount as a price to travel. Even these big and giant trucks also have to pay certain amount (Mahendra A., Higgins T., 2011, pp. 3).

Comparative scheme running costs

Road pricing Concept

The term Road Pricing is levying a distance-based road tax. Road pricing generally means the application of direct costs to the use of vehicle for particular route or right to use to a road network. This kind of fees has been used for many years. The history records that the first intention of such type of pricing was Toll Bridges. In last thirty years, the interest towards the concept of road pricing has grown due to the growing traffic congestion. This concept has also been discussed by the economists. According to them, the application of the principles of rationing property is limited consumed by the competing users. According to the macro-economic principle of supply and demand in which price can influence the behaviour and consumer choice (Walker J., 2011, pp. 7).

Other principles also apply toward the variable-pricing related to telephone approach services air travel and public utilities. In addition to this, the development of technology has allows more efficient collection and rate of road which assist in the increasing the road pricing concept.

Up till now, only academics and professional have held discussion on the application of road pricing, but the general public should be interested more in this issue as they are the one who suffer when serious and critical accidents take place due to the heavy vehicle running on roads. Interest of general public will force government in making roads for heavy vehicles or organized roads for the citizen. Given the growing interest in the issues, , the Board found that urban transport was appropriate to present an overview of the context, the elements, challenges & issues linked pricing of road, and underlines the innovative ...