This paper presents, a non-technical introduction to the economic principles relevant for transport pricing design and analysis. We provide the basic rationale behind pricing of externalities, discuss why simple Pigouvian tax rules that equate charges to marginal external costs are not optimal...

It can be imagined that a reward may be a far more popular policy instrument than the traditional taxation approach towards containing externalities, usually presented in public economics literature. Given the implied policy potential, we conducted an extensive reward experiment in real world...