Public sector pricing policies may undermine incentives to reduce costs. Therefore measures to promote cost reduction should be part of any pricing policy reform designed to increase cost recovery.

What impact do road user charges have on cost recovery? And when they fail to cover total costs, how should the resulting deficit be financed?

Modern transportation systems have far-reaching, and serious consequences: deaths and injuries from accidents, pollution of air, water and groundwater, noise congestion, and the greenhouse effect. As world transport systems expand and become increasingly motorised, the transportation community is searching for systems that are both efficient and sustainable. Here, leading international researchers explore the issues and concepts and define the state of knowledge concerning the full costs and benefits of transportation.

Taking a comprehensive approach to two central, closely intertwined themes in the field of transport economics, this illuminating Handbook recognizes the critical socioeconomic importance of transport pricing and financing.

Printed on Demand. Limited stock is held for this title. If you would like to order 30 copies or more please contact [email protected] Contact [email protected], if currently unavailable. In developing and transition economies, 60 to 80 percent of all passenger and freight transport moves by road-the main form of access for most rural communities. Yet most of the 11 million kilometers of roads in these economies are badly maintained and poorly managed. This paper discusses one of the most effective ways to promote sound policies for managing and financing road networks--commercialization. It discusses the emerging central concept of bringing roads into the marketplace, putting them on a fee-for-service basis, and managing them like a business.