ECONOMIC ARGUMENTS ON TOLL ROADS.

From the economic point of view, tolling is an instrument that can be uniquely suited to the collection of efficient road use prices. It is important to ensure that effects on the economy at large, not only on the toll agency, are included in toll road analysis. This is not generally done and is the reason for this paper. There are, however, a number of conditions under which tolling may be appropriate (i. e. , not worsen resource allocation or even improve it over untolled roads despite higher costs inevitably entailed in tolling with current technologies). Examples of results from tolling in two developing countries are provided. Only tolling of interurban roads is discussed.