

Most surface transportation infrastructure in the United States is not paid for by charging travelers according to when or how much they choose to use it.
Money for transportation projects is collected from a mix of taxes and fees, some of which are only indirectly linked to how much travelers use the transportation system and some of which have no relation to use. Annual vehicle registrations, for example, do not vary by the number of miles a vehicle is driven each year, while the difference in fuel efficiency between a hybrid- electric sedan and a full-size pickup truck means that per gallon taxes on motor fuels do not accurately reflect users' annual miles traveled. Neither registrations nor gas taxes reflect whether users opt to travel at times when congestion is the worst.
In the past, annual registration fees and fuel taxes collected from a few large wholesalers were justified because of their tamper-proof simplicity, low cost to collect, and convenience to the public. As information technology has evolved, however, new ways to price the use of roads, bridges, and tunnels are becoming a practical alternative to indirect taxes. By investing in a new generation of direct fee revenue collection systems, transportation infrastructure agencies can protect themselves from significant revenue losses caused by more fuel-efficient vehicles whose drivers pay less tax. In congested metropolitan areas, meanwhile, agencies can shift demand for travel to off-peak hours by changing user fees throughout the day, which may stimulate economic productivity and environmental quality by making travel times shorter and more reliable while reducing pressure to add capacity to handle congestion. And by charging heavy vehicles on the basis of axle weight and the type of road they are on, direct price signals can help reduce pavement damage.
Widespread acceptance will depend on clear evidence that the fees can be administered in ways that are fair and convenient for users and that are practical and cost-efficient for governments. | While direct user fees offer the promise of greater financial sustainability, more effective congestion management, and reduced roadway wear and tear, widespread acceptance will depend on clear evidence that the fees can be administered in ways that are fair and convenient for users and that are practical and cost-efficient for governments. At the same time, it must be recognized that no tolling or pricing strategy is appropriate in all circumstances or for all categories of investments and geographic areas. Around the world, user fees have been implemented either at a targeted facility level or on a broader scale. Based on a review of actual examples as well as applied research and theory, this chapter examines the strengths and weaknesses of both targeted and comprehensive tolling and pricing approaches in the context of pursuing widespread implementation at the federal, state, or local levels as a supplement or replacement to traditional transportation funding sources. |