Economics Editor, The Age
Isn't a pay as you drive tax simply a petroleum tax?
It goes beyond that. It varies according to how congested the road is.
And also the loaded weight of the vehicle and how prone the driver is to accidents. Petrol taxes are not an especially good way of capturing these external costs. Better than nothing but not much better.Harry Clarke
Your proposals this morning on 891 Adelaide of the Harry Clarke recommendations of Road use taxes may be or seem a practical economic solution but akin to many of such solutions is neither politically or socially practical as you should well know.It is a futile argument you are proposing and like many "economic solutions " is modelled on the "ceterus paribas " qualification which in itself is a nonsense.
Charging based on how congested the road is only discourages improvement to the road, in fact it likely encourages the creation of greater congestion.Here in Perth the city council has just reduced a main road from 4 lanes down to two. I can't help but marvel at the intellect of our city planners.
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