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How to Buy the Road

Analysis by Chris Davis
Mon Sep 14, 2009 08:00 AM ET
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The mileage fee is a sensible plank that belongs in any platform developed to remake the way we use energy. Among its other virtues, the mileage fee creates a way to incentivize efficient use of a constrained resource: the road.

In Bern Grush's dedicated to exploring the mileage fee (where he responds to this "PowrTalk") he identifies a complex of purposes that would try to shape road policy, then argues that the mileage fee is the one tool capable of addressing them all:

The Complex of Purposes

[1] The move to improved or alternate power plants makes the gas-tax less useful every day. Mary Peters put it best: “Relying on the gas tax is like relying on cardboard to keep the rain out – the longer you use it the less it works.”


[2] Taxing the resource (oil) we want people to use less of in order to fund our roads is plainly shooting ourselves in the foot as is funding hospitals solely on cigarette taxes.

[3] Are we trying to fund roads? Then we can tax anything you’d like such as property tax or sales tax as is now done in some jurisdictions (a great congestion-builder, by the way).

[4] Are we trying to manage congestion? Then tax by time of use, distance driven and place of use (TDP).

[5] Are we trying to reduce emissions? Then tax road use by vehicle type/size.

[6] Are we trying to move people to electric cars? Then tax gas AND roads.

[7] Are we trying to balance the damage from trucks? Then charge trucks more (to be reflected at retail anyway; sorry, Virginia, no free lunch).

[8] Are we trying to open highways for more effective commerce? Then charge cars more.

[9] Are we trying to get people to use transit or walk or bike or telework or move closer to work? Then charge by time of use, place of use, and distance driven.

Solution: the Mileage Fee

Mr. Grush concludes: "If you want to do all of these things in some reasonable measure, then Time, Distance and Place (TDP) charging is your ticket – your only one. The technology now available to do this can be made private (even anonymous), and can handle parking, insurance, driver rewards and credits and a dozen other user-attractive features, so that the cost of metering for road-use charging can be reduced to the current cost of collecting gas tax."

Tags: Conservation, Energy Efficiency, Government, Transportation, Transportation Infrastructure

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