Transportation's Fossil Fuel Tax Paradox
The federal government -- and many states -- promote transportation policies that encourage less use of fossil fuels.These same governments are also the beneficiaries of the motor fuel taxes that are built into the prices U.S. drivers pay at the pump.That's the potentially troubling paradox pointed out by RAND's Martin Wachs in, The Future of Transportation, Finance: A New Generation of User Fees. Wachs penned that recent, fascinating opinion piece for Resources for the Future, a Washington, D.C.-based think tank with economic, social, health, and environmental interests and a series of web and print publications. In the piece, Wachs -- who is RAND's director of transportation, space, and technology -- discusses the history of U.S. fuel taxes, European variants, and technological innovations that he urges be tested in this country on a significant scale. Wachs' main point: that sufficient transportation funding can no longer be effectively provided by a nearly century-old system.He writes, for example:
"Charging users more directly than we do today could save some travelers money while rewarding greener options such as public transit, walking, and cycling. Knowing more precisely where travel actually takes place, the federal government could more accurately fund jurisdictions for road maintenance. Because vehicle miles of travel are growing faster than consumption of petroleum fuel, a revenue-neutral switch to vehicle miles traveled (VMT) charges would cause revenue to grow without increasing the rates charged over time. In contrast, gas taxes would have to rise over time to keep pace with inflation and road costs."
Related: RAND's Paul Sorensen on traffic, congestion, and ideasto lessen both. And, more Sorensen.
Photo credit: The image accompanying this post was taken by Flickr user taberandrew. It was used under Creative Commons license.
