Assessment of Prospective Mileage-Based Fee System to Replace Fuel Taxes for Passenger Vehicles in Pennsylvania
3/1/2021
Historically, transportation infrastructure in the United States has been funded through a per-gallon fuel tax levied at the state- and federal-levels. The federal fuel tax has remained constant over the last thirty years, even as road construction and maintenance costs have risen steeply in that time. This funding gap is widened by advances in hybrid and electric vehicle technology, which have significantly improved fleet fuel-economy and reduced revenue from fuel tax. To address this, an increasing number of jurisdictions are considering programs where vehicles are taxed per-mile traveled, rather than per-gallon of fuel consumed. These mileage-based user fees (MBUFs) could replace federal and state fuel taxes and reduce the deficit in transportation infrastructure funding. This report develops high-resolution estimates of annual vehicle miles traveled (VMT) per vehicle aggregated at the state, county, and zip code level. Based on these estimates of VMT and fuel economy, researchers estimate the annual cost to vehicle owners of the existing fuel tax, and compare this cost against the cost of MBUF’s, at various rates.
Authors: Matthews, H. S.; Fischbeck, P. S.; Yuan, C.; Fan, Z.; Lyu, L.; Acharya, P. S.