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What are the implications for demand in the short and long run of undercharging for road transport?
The demand for road transport is a derived demand, derived from the demand to transfer both the population and goods between different locations (Griffiths and Wall. et al 1999) and is heavily influenced by both time and space, subjected to regular fluctuation creating the characteristic peak and off peak situation upon urban roads. This results from the immediate consumption of a road, if it is to be considered as a good, preventing the possibility of storing
's. At present it seems a very unfair policy with the externalities paid for by the whole population in the form of taxation, something that there is no personal choice over paying. This inevitably means that those who use road transport more benefit more from undercharging than those that don't. Those at the greatest include the small proportion of the population that do not drive that in effect pay for those that do in taxation.