Government versus toll funding of road projects - A theoretical consideration with an ex-post evaluation of implemented toll projects

- Socioeconomic principles to choose between government and toll funding are developed.
- The principles are then tested on 25 Norwegian toll projects that have been implemented.
- We find that BCAs assume government funding only even if projects are funded by tolls.
- Furthermore, the marginal cost of government funds were not included in the analyses.
- Even so, 50% of tolls generated higher B/C ratios as compared to government funding.