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

Abstract

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.

Vehicle miles traveled fee to complement the gas tax and mitigate the local transportation finance deficit

“…While virtually no differences in impacts to urban and rural areas may be seen statewide, certain rural counties may benefit from implementing the VMT fee (Matteson et al, 2016). Further, implementing a VMT fee could also reduce overall VMT/congestion and improve air quality in the study state or region (Al-Deek & Moradi, 2013;Boos & Moruza, 2008;Zhang & Lu, 2013). Implementing a VMT fee in a state or region could also affect the neighboring states or regions to varying degrees (Zhang & Lu, 2013), in particular along the state or region borders.…”

“…Further, implementing a VMT fee could also reduce overall VMT/congestion and improve air quality in the study state or region (Al-Deek & Moradi, 2013;Boos & Moruza, 2008;Zhang & Lu, 2013). Implementing a VMT fee in a state or region could also affect the neighboring states or regions to varying degrees (Zhang & Lu, 2013), in particular along the state or region borders. Bertini et al (2002) discussed a wide area and data hub option for setting up fee collection centers.…”