Tax Sources of Funding the Road Network as a Tool to Increase Transport Energy Efficiency

Abstract

The goals of the paper are to study the financing structure of Russian road construction and to identify the contribution share of the vehicles owners in road construction. The conclusion is drawn that most of the roads do not meet the standards, and the negative effects of using a poor-quality road network are analyzed. Besides that the paper analyzes regional imbalances in the level of car ownership and the development of roads. The development dynamics and structure of the road network are analyzed. The authors consider reasons for the slow pace of road network expansion in Russia and look at trends in transport tax revenues and road construction expenditures. It is concluded that there is a number of objective reasons that require far higher spending on road construction in this country in comparison with developed economies. Types of vehicle taxes and fees are studied. It is found that only some of the charges build a link between the amount paid and the intensity of road use by the taxpayer. Sources of government funding for road funds are explored. The research shows that the fiscal and regulatory role of transport tax should be enhanced in regions with medium, high, and very high levels of private car ownership. The authors analyze the possibility of increasing fiscal and regulatory significance of transport taxes and charges. The conclusion that improving the quality of the road network will lead to a reduction in specific fuel consumption and improve the energy efficiency of transportation is justified.