Concepedia

Efficient Transportation Infrastructure Policy

The Journal of Economic Perspectives · 1991 · 118 citations · 17 references

Open access

TL;DR

Current transportation policy relies on expanding road capacity, which quickly leads to congestion and deterioration, highlighting the need for a shift in national mindset. The paper argues that infrastructure investment must be priced and funded more efficiently to break the cycle of overinvestment and rapid deterioration. It proposes keeping roads at existing lane widths while implementing congestion‑based tolls tied to pavement wear, thereby reducing peak capacity use and preserving road condition. Efficient use of existing capacity can lower the need for large public investments in airports and roads and prevent recurring infrastructure problems.

Abstract

This paper offers a perspective on paying for and investing in the transportation infrastructure. The following example illustrates the need to move away from the current national mind set. Pick any pothole-laden, congested two-lane road in an urban area. Suppose public funds are used to widen the road to four lanes and to repave it. Benefits will immediately flow from this investment in the form of lower travel time and less vehicle damage, but before long, the road will again fill to capacity and deteriorates. This cycle can be broken only if infrastructure is priced and invested in more efficiently. If the pothole-laden road is kept to two lanes when it is repaved but vehicles are required to pay efficient tolls based on congestion and pavement wear, then the road's capacity is far less likely to be exceeded during peak periods and its pavement will remain in good condition. Making efficient use of current transportation capacity will reduce the need for massive public investment in airports and roads and will prevent the recurrence of infrastructure problems.