February 02, 2007

Gas tax and road congestion

Kenneth A. Small, Clifford Winston and Carol A. Evans (Road Work: A New Highway Pricing and Investment Policy, Brookings, 1989) estimated that replacing gasoline taxes with marginal cost congestion tolls and pavement-wear taxes [related to the weight of trucks] and building roads to optimal pavement thickness would generate an annual welfare gain of $23.9 billion [in the US alone].
From here.

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