Feasibility Study of Using Sustainable Income Sources to Provide Road Transport Services

Document Type : Original Article

Authors

Instructor, Housing & Urban Development Research Center, Tehran,

Abstract

Road transport infrastructure is one of the national assets that have been developed over the years according to the needs and facilities available. At the same time, studies show that the current situation of the country's roads is undesirable in terms of quantity and quality. On the one hand, the development of new roads is facing a shortage of resources, and on the other hand, the existing roads are not of good quality and their maintenance attracts a significant part of the resources. Also, the budget allocated for roads maintenance has not been sufficient due to the increasing expansion of related infrastructure. Therefore, considering the importance of the issue, the purpose of this article is to identify sustainable sources of income for the Iran Road Maintenance & Transportation Organization. Studies show that the most important sources of revenue for the road sector in various countries are fuel taxes as well as vehicle tolls. Also, new sources of income in the field of road transport have been identified and the economic effects of the application of fuel tax (in favor of transportation) on the Iranian economy have been examined.  The results show that changes in the prices of fuel products (gasoline and diesel fuel) have a significant effect on inflation in the Iranian economy. Also, this value for the price of diesel fuel is 0.1 for the short term and 0.18 in the long term. According to the obtained results, the effect of increasing the price of gasoline on inflation is more than the effect of increasing the price of diesel fuel.

Keywords

References

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