June 15, 2006
Hat tip to a reader who pointed me to a three-part series in the Denver Post about toll roads that fail to meet revenue projections.
The series title is "Truth be Tolled."
The consequences include the need to refinance construction bonds, and perhaps more invidiously, an incentive to allow more development so the road fills up and revenue goals are hit!
June 15, 2006 3:08 PM
Michael Wilson Says:
I'm going to have to do some digging, but as I recall toll roads in the U.S. over a couple of hundred years of history have not made money. I recall reading that they were primarily built to encourage development, which given our history would have been obvious.
June 15, 2006 7:53 PM
Ross Williams Says:
I think every study of tolls in Oregon has shown that they won't actually pay for the cost of the road. The point of tolling ought to be to make sure the capacity is used for its highest purpose by sending a more accurate economic signal about the cost of its use. If you toll existing capacity chances are you won't need to add new capacity at all.
There may be reasons new capacity is desirable. But regardless of the reasons, the road will fill up unless something is done to prevent it.