Public Finance Aspects of Transport Charging and Investments

Abstract

This chapter addresses three aspects of the pricing and financing of transport infrastructure. First, the chapter will analyze the optimal pricing and investment of transport infrastructure and take a normative approach and propose cost benefit rules to assess investments together with the way they are funded. Second, the chapter will survey the specific problems that arise when local governments have responsibility for transport infrastructure and pricing: tax exporting, spillovers, etc. Third, the chapter will take a political economy stance and look at issues like lobbying, earmarking and bureaucratic influences.