Abstract

This paper presents a framework to analyze vehicle miles travelled (VMT) fees as an alternative to fi nance maintenance, rehabilitation, and new construction transportation projects. The VMT feasibility framework addresses major factors related to public acceptance, revenues, technology, type of contract, government policies, enforcement, administration, and invoicing. We argue that our suggested VMT fee policy is an equitable usage-based system since in our analysis, VMT fees are differentiated by vehicle axles and emissions. In turn, VMT charges will also motivate fl eet owners to renew vehicles or switch to alternative transportation modes such as mass transit, walking, and biking. An example based on data from the state of Texas illustrates some of the potential revenues and benefi ts associated with a VMT fee policy.

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