System Trials to Demonstrate Mileage-Based Road Use Charges (2010) / Chapter Skim
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Pages 10-19
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9 2. POTENTIAL POLICY GOALS OF VMT FEES This chapter outlines the potential policy goals that might be supported by a system of VMT fees.
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10 Against this backdrop, analysts and decision makers have been exploring a broad array of revenue options that might augment or replace federal and state fuel taxes (see, e.g., Whitty 2003, TRB 2005, Cambridge Systematics et al.
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11 tax rates would remain in place until 2015. It then compared the revenue effects of: (a)
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12 VMT fees. In a similar vein, the system could be designed to levy VMT fees for travel on public roads but not on private roads.
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13 50 percent more per kilometer than the least polluting vehicles. Since the program was launched in 2005, the emissions-based price structure has stimulated a 58 percent shift from dirtier truck models (Euro class 1, 2, and 3)
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14 2.3.4. Additional Benefits In addition to the intrinsic benefits of reducing recurrent traffic congestion, vehicle emissions, and excessive road wear, structuring VMT fees to reflect the social costs associated with travel -- particularly the costs associated with congestion -- would provide three additional benefits: • Raising additional revenue.
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15 again using a benefit-cost ratio screen of 1.5, the cost of improving the Interstate system would decrease to just $24 billion (Poole 2010) , nearly a 50 percent reduction.
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16 strategies to avoid excessive data storage and processing requirements, an issue that merits additional research attention.
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17 • Location-dependent travel services. If the in-vehicle equipment were able to determine the current location or route of travel, it would also be possible to enable many of the features commonly associated with personal navigation devices -- for example, the provision of realtime routing assistance or the identification of nearby points of interest.
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18 vehicle's odometer each year and assess VMT fees based on incremental mileage. By basing fees on mileage rather than fuel consumption, such a system would provide more sustainable revenue than fuel taxes.
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