What methods are used to establish the optimal sticker (vignette) prices for highway toll collection?

26 September 2014 1 9K Report

Vignette (sticker) is a form of road pricing imposed on vehicles, usually in addition to the compulsory road tax, based on a period of time instead of the usual road toll method based on distance traveled. It is currently implemented in some Central European countries (Austria, Slovenia, Switzerland, etc.) I am interested how were the sticker prices established. Is there any research showing what would be the "optimal" sticker prices in a particular case? What is the state of the art method?

Darren Kenneth Walton

The best method to determine the optimal price (in advance of actual implementation) is a willingness to pay/willingness to accept survey (WTP/WTA). These are part of a suite of methods called 'contingent valuation'.

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