JTRF Volume 56 No. 3, Fall 2017A Framework to Analyze the Feasibilityof Vehicle Miles Traveled Fees to Financea Sustainable Transportation System

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.

Fuel Tax versus Vehicle-Miles-Traveled Fee

The vehicle-miles-traveled (VMT) fee has been widely suggested as an alternative funding mechanism to the current state of practice, the fuel tax per gallon. The VMT fee has drawn researchers' and policy makers' attention, particularly regarding its equity performance in various social groups. With the introduction of the concept of vulnerable households, and with the use of socioeconomic-, geographic-, and vehicle-specific attributes from the 2009 National Household Travel Survey, the social groups in the United States that were most likely to be affected under each funding mechanism were identified through the estimation of three-stage least squares models at the national level. The results showed that households located in states with lower fuel taxation operated vehicles of lower fuel efficiency and thus contributed a larger portion of revenues generated by the fuel tax. In contrast, households with higher fuel-efficiency vehicles or with a higher average income generated more trips annually and thus would pay higher VMT fees at the household level. The study also examined whether the identified vulnerable households at the national level were different at the state level. With the use of the state of Iowa as a case study, the results suggested that, despite some similarities in the characteristics of the vulnerable households at the two levels of analysis, the development of state-specific models was statistically supported.

Vehicle Miles Traveled Fee System in Nevada

Several barriers are associated with the implementation and deployment of a vehicle miles traveled (VMT) fee system; these barriers range from technology issues to public acceptance. Technology-related barriers are easier to address compared with public-related barriers. In addition, addressing technological barriers requires explicit consideration of the public's attitudes and preferences in relation to various technological options. Public perceptions of and billing preferences for a VMT fee system in Nevada were studied. A survey questionnaire was developed to capture these perceptions and preferences. A series of discrete choice models—ordered, probit, and logit models—were tested to determine the best model to use for evaluating the results of the survey. Multinomial logit models provided the best explanatory power. Modeling assumptions were tested to ensure adequate results. The model provided several interesting insights about public perceptions and preferences in regard to the VMT system. On the basis of these insights, some policy recommendations are provided.

Implementing Marginal-Cost Vehicle Mileage Fees on the Maryland Statewide Road Network

Properly structured vehicle mileage fee systems may help transportation professionals and officials at all levels address prominent issues such as funding gaps, traffic congestion, and emissions. In theory, vehicles should be assessed a user fee equivalent to the full marginal cost not borne by users. The full marginal cost of auto and truck travel in different time periods on all roadways in Maryland was estimated. The study evaluated the impacts of such marginal-cost vehicle miles traveled (VMT) fees on travel behavior, revenue generation, equity, pollution, and greenhouse gas emissions in Maryland and the surrounding states of Delaware, Pennsylvania, Virginia, and West Virginia, and the District of Columbia. Results showed that with consideration of all driving externalities, the marginal-cost VMT fee for travel in Maryland during peak periods ranged from 0.20 to about 12.16 cents/mi and from 3.91 to about 45.33 cents/mi for cars and trucks, respectively. Compared with existing revenue policy, the marginal-cost VMT fee could reduce overall VMT by 7.65% in the multistate region covered by the quantitative model and by 7.81% just in Maryland. Also, air pollution and greenhouse gas emissions in Maryland could be reduced by 7.62% to 9.42% by pollutant type. Total revenue generation would increase by about 168% (including fuel taxes and bridge and roadway tolls). In regard to income equity, the middle-income group would be hurt most (largest consumer surplus decrease), while the highest-income group would be hurt least. Results also indicated that the proposed marginal-cost VMT fee in Maryland could affect neighboring states to varying degrees.