Implementing a Mileage-Based Road User Charge

Abstract

This article explores a series of issues related to implementing a mileage-based road user charge. This user charge is intended to eventually replace the motor fuel tax, which is certain to become increasingly less productive as gains in fuel mileage occur and as electric hybrid and eventually hydrogen fuel-cell vehicles enter the market. Before so great a change can occur as to how roads in the United States are financed, a series of policy and operational considerations must be addressed. The article first presents an overview of a mileage-based road user charge approach, then examines a variety of issues related to its implementation, and concludes that substantial benefits from implementing this new form of user charge are possible.