A critical evaluation of road pricing in South Africa Duncan Lishman.

 

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dc.contributor.advisor Leiman, Anthony en_ZA
dc.contributor.author Lishman, Duncan en_ZA
dc.date.accessioned 2014-07-31T12:25:43Z
dc.date.available 2014-07-31T12:25:43Z
dc.date.issued 2013 en_ZA
dc.identifier.citation Lishman, D. 2013. A critical evaluation of road pricing in South Africa Duncan Lishman. University of Cape Town. en_ZA
dc.identifier.uri http://hdl.handle.net/11427/5749
dc.description Includes abstract.
dc.description Includes bibliographical references.
dc.description.abstract In an attempt to provide much-needed finance for road investments, the government’s national road agency has introduced numerous toll roads over the last three decades. It is currently in the process of introducing open road tolling on a network of Gauteng’s highways. Economic theory provides a rich understanding for pricing road use, particularly with regard to the pricing of externalities. By quantifying these externalities for the South African case, this paper reveals evidence of gross mispricing for road use. Specifically, the magnitude of road freight trucks’ external costs indicates that there is an absolute underpricing of road use for these vehicles. On the grounds of the externalities considered in this paper, passenger cars should, in fact, face a toll negligible in comparison to heavy vehicles. That they do not points to massive cross-subsidisation and that the relative price between light and heavy vehicles should be revisited. Appropriate pricing will improve economic efficiency by reducing cross-subsidisation. It will also rationalise the choice of freight modalities in South Africa, with the likely effect that a greater volume of goods will be carried by rail. Despite the welfare gains that the policy offers, one must be cognisant of the distortions that optimal road pricing may have. en_ZA
dc.language.iso eng en_ZA
dc.subject.other Applied Economics en_ZA
dc.title A critical evaluation of road pricing in South Africa Duncan Lishman. en_ZA
dc.type Master Thesis
uct.type.publication Research en_ZA
uct.type.resource Thesis en_ZA
dc.publisher.institution University of Cape Town
dc.publisher.faculty Faculty of Commerce en_ZA
dc.publisher.department School of Economics en_ZA
dc.type.qualificationlevel Masters
dc.type.qualificationname MCom en_ZA
uct.type.filetype Text
dc.identifier.apacitation Lishman, D. (2013). <i>A critical evaluation of road pricing in South Africa Duncan Lishman</i>. (Thesis). University of Cape Town ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/5749 en_ZA
dc.identifier.chicagocitation Lishman, Duncan. <i>"A critical evaluation of road pricing in South Africa Duncan Lishman."</i> Thesis., University of Cape Town ,Faculty of Commerce ,School of Economics, 2013. http://hdl.handle.net/11427/5749 en_ZA
dc.identifier.vancouvercitation Lishman D. A critical evaluation of road pricing in South Africa Duncan Lishman. [Thesis]. University of Cape Town ,Faculty of Commerce ,School of Economics, 2013 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/5749 en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Lishman, Duncan AB - In an attempt to provide much-needed finance for road investments, the government’s national road agency has introduced numerous toll roads over the last three decades. It is currently in the process of introducing open road tolling on a network of Gauteng’s highways. Economic theory provides a rich understanding for pricing road use, particularly with regard to the pricing of externalities. By quantifying these externalities for the South African case, this paper reveals evidence of gross mispricing for road use. Specifically, the magnitude of road freight trucks’ external costs indicates that there is an absolute underpricing of road use for these vehicles. On the grounds of the externalities considered in this paper, passenger cars should, in fact, face a toll negligible in comparison to heavy vehicles. That they do not points to massive cross-subsidisation and that the relative price between light and heavy vehicles should be revisited. Appropriate pricing will improve economic efficiency by reducing cross-subsidisation. It will also rationalise the choice of freight modalities in South Africa, with the likely effect that a greater volume of goods will be carried by rail. Despite the welfare gains that the policy offers, one must be cognisant of the distortions that optimal road pricing may have. DA - 2013 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2013 T1 - A critical evaluation of road pricing in South Africa Duncan Lishman TI - A critical evaluation of road pricing in South Africa Duncan Lishman UR - http://hdl.handle.net/11427/5749 ER - en_ZA


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