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

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dc.contributor.advisorLeiman, Anthonyen_ZA
dc.contributor.authorLishman, Duncanen_ZA
dc.date.accessioned2014-07-31T12:25:43Z
dc.date.available2014-07-31T12:25:43Z
dc.date.issued2013en_ZA
dc.descriptionIncludes abstract.
dc.descriptionIncludes bibliographical references.
dc.description.abstractIn 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.identifier.apacitationLishman, 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/11427/5749en_ZA
dc.identifier.chicagocitationLishman, 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/11427/5749en_ZA
dc.identifier.citationLishman, D. 2013. A critical evaluation of road pricing in South Africa Duncan Lishman. University of Cape Town.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
dc.identifier.urihttp://hdl.handle.net/11427/5749
dc.identifier.vancouvercitationLishman 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/11427/5749en_ZA
dc.language.isoengen_ZA
dc.publisher.departmentSchool of Economicsen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherApplied Economicsen_ZA
dc.titleA critical evaluation of road pricing in South Africa Duncan Lishman.en_ZA
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMComen_ZA
uct.type.filetypeText
uct.type.publicationResearchen_ZA
uct.type.resourceThesisen_ZA
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