Should Congestion Tolls Be Set by the Government or by the Private Sector? The Knight-Pigou Debate Revisited (RFF)

Roads in the United States are congested and in disrepair. If private sector tolls are used to finance road infrastructure projects, such tolls will harm motorists, lengthen commute times, and provide less revenue than tolls set by the government. This discussion paper by Resources for the Future (RFF) clarifies issues debated by A.C. Pigou and Frank Knight about correcting inefficient use of congestible resources and the role of the government versus the private sector. Download the discussion paper on the RFF website.