Paying for pavement

Martin Wachs shares his views on the re-shapening of the transportation finances in the US. He has revealed about the pricing travel more fairly using a flexible approach that is based on vehicle-miles traveled (VMT). The Federal Highway Trust Fund, which is based on the motor fuel tax, was set up more than 50 years ago to ensure a dependable source of financing for the National System of Interstate and Defense Highways and the Federal Aid Highway Program. Recent commission reports and studies point to distance-based charges or VMT fees as the most promising mid- to long-term solution to replace the fuel tax. Non-GPS technology is currently available that makes it possible to conduct a large-scale implementation of distance-based charges within two to five years. This approach goes a long way toward addressing public concern about a potential invasion of privacy.