The Privatization of Roads and Highways - Ludwig von Mises Institute

An Interview with Walter Block 411
points of entry from non-company territory. There will also be
visitors, some frequent and some not. Perhaps these local roads
will need to be paid for in full by locals?
WALTER BLOCK: It is hard to say how they would best collect
revenue from the users of these roads. This is an entrepreneurial
decision. It is like asking, before the advent of Disney World,
would they charge by the ride, or have an entrance fee? Would
they make it cheaper if you purchased a week, month, year long
ticket?
Now that I’ve ducked your eminently reasonable question,
let me speculate about it. One possibility would be a charge per
mile, depending upon the time of day, day of the week. Another
would be a fixed fee. A third would be some combination,
thereof. Perhaps the road owner (likely to be a company the
shares of which are owned by the local farmers) would allow
choice in this regard to its customers. Those road companies that
served consumers well would profit and be able to expand, those
that did not would suffer losses, and would be more likely taken
over by better managers. Probably, visitors would be charged
more, unless the place was trying to attract tourists.
Let’s look at private roads in malls. Some allow you to park
for free, if they want to encourage attendance. Others charge a
fee, unless you make a purchase. Practices vary. So might they in
Saskatchewan. All we can say is that if different pricing policies
long endure, then they all satisfy consumer needs. If not, the efficient
ones will out-compete the inefficient ones.
QUESTION: Heavy trucks which haul grain and livestock
down these gravel roads are responsible for much of the degradation.
Perhaps the drivers of these trucks would need to pay
more road access fees than would drivers of cars and pickup
trucks?
WALTER BLOCK: Here I am on firmer ground. We once did
have private roads, several centuries ago. They charged more for
heavier wagons, horses, and more axles. They also charged based
on the width of a wheel. A lot for thin wheels which churned up
the dirt roads (think ice skates) and less for wide wheels which