Fuel Taxes and Toll Roads
Question and Answer
Toll Roads代写 What are the advantages and disadvantages of toll roads for the driver? Why might an individual prefer to pay a toll than to use a free road?
What are the advantages and disadvantages of toll roads for the driver? Why might an individual prefer to pay a toll than to use a free road?
Individuals face dilemmas to chose the best alternatives but the various available alternatives carry differential analysis. A rational consumer compares both implicit and explicit costs associated with the product of services and chose the one with the least cost. Tolls roads are occasional stops where individuals have to stop and pay a certain amount for causing or using the road. There are advantages and disadvantages associated with the implementation of toll roads.
Toll roads were introduced to reduce road congestions and increase free flow of traffic. Toll Roads代写
All toll stops in United States use technologies that ensure there is less delay when drivers are using the services. Drivers have options to either pay electronically using prepaid transponders or have the monthly billed to them at the end of the month. Toll roads are also used in response the externalities like greenhouse emission and time wasted during the traffic. Most importantly vehicles are allowed to move at a speed that most economical and efficient to fuel usage (Mankiw, 2014). In economic terms, tolling road is used as the most efficient way of collecting prices for the usage of roads.
However, tolling road has one main disadvantage to drivers. Toll Roads代写
It is the only fee that drivers have to pay to access various roads. These roads are premium and some are charged higher fees, therefore, they end up being underutilized by motorists. The time saved for use of these roads can be leveraged to other productive activities that can generate higher income to the government and drivers which can cover the toll paid.
Overall, the opportunity cost and toll fees lower than for the toll roads compared to free roads. That is drivers can save more time and power when using toll roads than when using free roads. Therefore, people prefer to use toll roads over free highways.
Are there other ways to pay for highways other than tolls or higher motor fuel taxes? Toll Roads代写
Imposing toll fees and gasoline taxes are not the only ways the federal and state governments can pay for highways. There are other ways to pay for new highways in the United States. Some of these include
a. Variable tax rates: The state governments can increase the tax rates for new vehicles. This will increase revenue collection.
b. Vehicle registration fees: Those who but cars will have to incur extra cost for registering their vehicles.
c. Debt financing: The government can source loans in commercial banks or individuals to fund new roads.
d. Local funding options: These include the number of revenues collected in states and districts. The funds can be used to finance highway projects.
e. Vehicle miles travel (VMT) tax: Every mile a vehicle covers can be taxed.
f. Public-private partnership: The government can partner with individuals and companies to build highways where they contribute half the amount of financing.
Using the model of financing where the cost is shifted to drivers will reduce the rate of car usage and fuel consumption as people look for alternatives to travel like railroads, cycling and walking. Overall, there is advantageous to the government as well the general public.
Are there environmental aspects to the use of toll roads versus free roads? Toll Roads代写
Tolling reduces the number of drivers on the road. Subsequently, the rate of gasoline used will be lowered. When it is done over time the rate of emission will be reduced significantly. On the other hand, free roads encourage consumption of fuels because more people are using them and hence increase greenhouse gas emissions.
References Toll Roads代写
Mankiw, N. G. (2014). Principles of Economics (8th ed). Stamford, CT: Cengage. ISBN: 9781337552134- Loose Leaf