Should we have more toll roads?

October 20, 2024

There’s nothing wrong with tolls on roads. Designed well, they can both pay for roads and ensure they are used efficiently. Without tolls, drivers considering whether or not to travel on particular roads at particular times need only consider the delays they themselves experience – those caused by the cars in front of them. This encourages drivers to under-use toll roads and over-use suburban streets, needlessly exposing people on those streets to noise, pollution and danger. It is also unfair to those drivers who have no choice but to use toll roads.

There’s nothing wrong with tolls on roads. Designed well, they can both pay for roads and ensure they are used efficiently.

Without tolls, drivers considering whether or not to travel on particular roads at particular times need only consider the delays they themselves experience – those caused by the cars in front of them.

They don’t need to consider the delays they impose on the users behind them. It’s one of the reasons we have too much congestion.

Properly designed tolls that vary with distance, location and time of day can make those costs apparent and get drivers to drive in ways that minimise congestion.

But as drivers in Australia’s three largest cities of Sydney, Melbourne and Brisbane know especially well, Australia’s tolls are exceedingly poorly designed.

Sydney might or might not be the “most tolled city in the world” but many of its tolls are very high and many of the surrounding roads aren’t tolled at all. This encourages drivers to under-use toll roads and over-use suburban streets, needlessly exposing people on those streets to noise, pollution and danger.

It is also unfair to those drivers who have no choice but to use toll roads. Other drivers who can use freeways that aren’t tolled don’t have to pay.

Private ownership stops properly designed tolls

Getting a system of tolls that is well designed ought to be easy, but the existing toll road operators have long-term contracts with state governments requiring compensation if what they can charge is changed.

Private ownership of public roads has long been regarded as less than ideal, including by the father of modern economics, Adam Smith, who in 1776 argued:

The source of this news is from University of Sydney

Popular in Research

Presidential Debate TV Review: Kamala Harris Baits Raging Donald Trump Into His Worst Self In Face-Off

Oct 21, 2024

Impact of social factors on suicide must be recognised

Oct 21, 2024

Print on demand business with Printseekers.com

Sep 6, 2022

The conduct of some Trump supporters is crude, sleazy and...deplorable

Oct 21, 2024

Students learn theater design through the power of play

Oct 21, 2024

MSN

Oct 21, 2024