Mileage-Based User Fees for Transportation Funding; A Primer for State and Local Decisionmakers

A RAND Corp study on transportation system funding in the light of increasing fuel efficiency.

Source site: http://www.rand.org/pubs/tools/TL104.html

Abstract: This primer presents some promising and innovative mileage fee system designs and transition strategies. For states or localities that are just beginning to consider the idea of mileage fees, awareness of these strategies can help determine whether shifting from fuel taxes to mileage fees merits further consideration. For jurisdictions already engaged in detailed assessments of mileage fees, these concepts can help refine system design -- with the ultimate aim of reducing costs and building public support.

The benefits of per-mile fees for driving include

• Reducing traffic congestion by varying the per-mile tax on the time of day
• Reducing road wear, by making heavy trucks pay a higher per-mile tax
• Reducing pollution, by making more-polluting vehicles pay a higher per-mile tax
• Pay-as-you-drive automobile insurance
• Automated parking fees payment
• Automated toll collection on bridges or toll roads
• Location dependent travel services
• Internet connectivity as a side benefit for vehicle passengers
• Improved vehicle safety, if implemented along with connected vehicle systems currently being developed

View in Google Docs: rand.org/content/dam/rand/pubs/tools/TL100/TL104/RAND_TL104.pdf"