Potential Benefits to the Freight Industry of Distance-Based Road User Fees

Status:  Complete
Report Date:  09/15/2010

Summary:

As vehicles become more fuel efficient, fuel taxes are producing less revenue for road construction, operations and maintenance. As a consequence, states are exploring replacing these taxes with other userbased revenue sources, such as mileage-based road user charges, also referred to as vehicle-miles-traveled fees. These approaches may also have the benefit of reducing highway congestion if pricing is varied by level of congestion. The commercial freight industry agrees that distance-based pricing, especially as it relates to congestion pricing, has system management and revenue benefits for transportation agencies but is skeptical about benefits to the industry and believes such fees will be more costly than current fuel taxes.

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