Road Tolls

Powerful Essays
Beginning with the accompanying article The Financial Times discuss the economic argument for extending road tolls across the country.
Road tolls cure form of road pricing and have already been introduced by the M6 spur road “M6 Toll road opens, the barriers at the M6 Toll booths were raised for the first time at 1010 GMT after a ribbon-cutting ceremony at which Transport Secretary Alistair Darling was the guest of honour” stated in the bbc article online and in the article “M6 toll road around Birmingham opened in 2003” , as it means of correcting Market Failure i.e. creating negative externalities created by traffic congestion as shown in the diagram 1.
Market Failure is defined as misallocation of resources as a result of failure in the overproduction of the market mechanism. The price mechanism has three functions the rationing, the signalling and the incentive function. Traffic Congestion is a global issue faced by world economies. It has an impact on each individual, cars give off carbon dioxide fumes "contributes 27.2 million tons of carbon dioxide emissions each year” suggested online website newsroom. Congestion increases the amount of fumes as the cars are stationary for a short period of time. The fume causes global warming which harms the environment in the long term. Therefore traffic congestion is known to cause negative externality i.e. negative externality is the costs produced by the producers, but paid by the individual or to the rest of the society. Other cost arising from traffic congestion includes noise, time wastage for doctors, business opportunity could be missed, loss of live due to an ambulance maybe unable to reach hospitals. There is a lot of fuel wasted during traffic congestion causing pollution which is borne by the owner, leading to global warming by damaging the environment.
Price

MSC Welfare loss

MPC

MPB=MSB

QS
QP
Output Diagram 1

The diagram shows negative

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Toll Roads

    • 274 Words
    • 2 Pages

    of my football games. When we were about to arrive there was a little toll booth that read, “Two Dollars”. We couldn’t find any money so we decided to run it. The fine was fifty dollars. I believe we should take out toll roads because they can cause a lot of conflict with people. One reason why we should take out toll roads is because they can cause traffic. People have jobs and may have to take toll roads to get to them. Say a man is looking for money in his wallet, it may take…

    • 274 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Tribasa Toll Road Project

    • 2844 Words
    • 12 Pages

    Tribasa Toll Road Project Case Study-4 Submitted By: Amardeep (P301412CMG331) Bhupendra Malviya (P301412CMG352) Pratik S. Soni (P301412CMG404) Rajesh Kumar (P301412CMG413) Shobhit Gupta (P301412CMG447) INDEX 1. Please prepare a flow of funds diagram for this transaction to trace how toll road revenue received by the Trust is used to pay taxes and operating expenses and to make interest and principal payments as required by the…

    • 2844 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    toll gate

    • 642 Words
    • 3 Pages

    There are millions of vehicles are passing through roads every day. Time, safety and efficiency are the major factors, while mode of transportation plays an important role in urbanization. Through this paper integrated solution has been offered to the transport related issues based on Atmel controller. It is the core which has hardware modules such as RFID, GPS, GSM and MEMS to handle the new transport related issues viz. Accident alert, Toll gate control, Parking slot management, Traffic rule…

    • 642 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Electronic Toll Collection

    • 2555 Words
    • 11 Pages

    A 2.45 GHz RFID System for Electronic Toll Collection B. Tech. Project by Praneeth Tammiraju 04007032 Index 1. Introduction 2. RFID in ETC a. RFID – a review b. The actual role c. Technicalities in brief 3. The Reader Design a. The transceiver design b. Circuit description c. The PCB of the reader d. Programmability of the reader 4. The Transponder Design a. Broad Overview b. Redesigning rectifier 5. Communication Protocol 6. Conclusion 7. References 2 3 3 3 4 6 6 7 9…

    • 2555 Words
    • 11 Pages
    Best Essays
  • Powerful Essays

    Automated Toll Gates

    • 7608 Words
    • 31 Pages

    AUTOMATED TOLL GATES INTRODUCTION : The automated toll gates are the application of both the concepts of road pricing and intelligent transport system.Earlier motorists used to wait at a toll booth or a plaza to pay a machine or a collector for using a particular toll road.But it is not so in the case of a automated toll gate.Here the motorists need not stop or even reduce the speed of their vehicle.The whole process is completely automated.Road pricing is a type of tax sought by…

    • 7608 Words
    • 31 Pages
    Powerful Essays
  • Good Essays

    Opinion on E-Tolls

    • 729 Words
    • 3 Pages

    questions about the democratic government that need to be soliciting and retorting. The e-Toll system is an electronic tolling system that does not require motorists to stop in order for them to be billed, just as an ordinary toll booth. This system is being imposed on to the motorists of Gauteng and is being masked as a method of raising funds for the development of Gauteng roads and ultimately, South African roads. The imposing of this system is totally out of the scope of a democracy; it is a huge…

    • 729 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Toll Brothers Essay

    • 2257 Words
    • 10 Pages

    Abstract This paper explores the strategic implications of supporting and implementing the Apple iPad into Toll Brothers, Inc. operations. The articles cited in this paper discuss the merits of the Apple iPad, Toll Brothers operations, and the increasing place of the notebook com-puter in the workplace. The articles, however, do not intentionally support the arguments of one another, but rather serve as a basis of analysis of the merits of supporting the tech-nology and implementing it into the…

    • 2257 Words
    • 10 Pages
    Best Essays
  • Good Essays

    For whom the bell tolls

    • 662 Words
    • 2 Pages

    understanding of what happened; however, although she did not fully comprehend what had happened to her, Liz was enshrouded by the reality of the sexual world. This stance is supported by narration: “ she walked across the dock and up the steep sandy road to go to bed”. As much confusion and distress sex may have caused Liz, she was ready to accept it into her life. Instead of prolonging her distress over…

    • 662 Words
    • 2 Pages
    Good Essays
  • Good Essays

    For Whom the Bell Tolls

    • 760 Words
    • 4 Pages

    only in the epiphany at the end of each person’s time? An ongoing skirmish occurs in every man’s mentality, victory, never found, until death is upon the individual. Ernest Hemmingway’s main character, Robert Jordan, in his novel, For Whom the Bell Tolls, portrays his internal war with death through imagery, personification, and symbolism. When at war in a foreign country, images of recollections are the thread that attaches an entity to authentic life and contentment, as does the same coping mechanism…

    • 760 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Road

    • 622 Words
    • 4 Pages

    CONCEPT NOTE Development of road from Gulbarga - Kazi Kotnoor – Hebbal - Kalagi - Sulepet - Chincholli - Konchavaram to Andhra Pradesh Border leading to Zahirabad in Andra Pradesh. Chincholi is one of the most backward taluka’s of Gulbarga district despite the fact that it has rich mineral, forest and agricultural resources. At present Gulbarga is connected to Hyderabad through Wagdari-Gulbarga-Sedam-Rebbanpalli road. However, Chincholi taluka which is closer to Hyderabad does not have any…

    • 622 Words
    • 4 Pages
    Powerful Essays