[PLUG] [ot] make free - ruin the country.

Nishit Dave stargazer.dave at gmail.com
Thu Apr 26 21:24:32 PDT 2007


On 4/26/07, आदित्य लघाटे <laghatea at gmail.com> wrote:
> On 4/26/07, Vaibhav Kulkarni <netvaibhav at gmail.com> wrote:
> > On 4/26/07, A G <subscrive at yahoo.co.uk> wrote:
> > > And so if they are not using this service, why should they pay?
> >
> > There may be people who do not use roads at all, why are roads free?
>
> Roads are free?? Don't u pay u t taxes???

Public goods may either be financed through cash flows that they
directly generate, or be cross-subsidized.

In case of cash flow financing, there are two distinct revenue streams
- usage charges and concessions / licenses.  The Mumbai - Pune express
highway that many of you use frequently will not pay back its
investment in any reasonable period of time relying on toll tax
(licensing) alone.  Some of its revenues come from licensing of food
malls and petrol pumps along the way.  Incremental cost-benefit
analysis may also include unmeasurable quantities and other
qualitative aspects such as time saved, pollution avoided, commerce
boosted, regional development, etc., which may not be immediately
translated to monetary terms and hence built in the toll amount.

Contd..


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