Date of Award


Document Type


Degree Name

Master of Arts (MA)



First Advisor

Dr. Donald Baum


This thesis investigates the possible short-run economic gains from implementing a different system of road pricing in Oslo, Norway. Oslo is the largest city in Norway, with a population of 450,000 inhabitants. First, the existing cordon toll ring that forces all inbound traffic to pay a flat toll to enter the central business district 24 hours a day is described. Second, the literature on optimal road pricing is investigated. Third, the flat tariff toll system is compared to two differentiated pricing systems that better reflect the costs imposed by drivers on society. When the loss of surplus and gains because of time savings for the pricing systems are compared with revenues collected, it is possible to conclude that more differentiated pricing increase economic welfare. More differentiated prices are also closer to the theoretical solution for optimal road pricing.


A Thesis submitted to the Department of Economics and the Faculty of the Graduate College of Nebraska In Partial Fulfillment of the Requirements for the Degree Master of Arts in Economics University of Nebraska at Omaha. Copyright 1995, Lars Eide