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Distributional impacts of changing from a gasoline tax to a vehicle-mile tax for light vehicles: A case study of Oregon

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  • Starr McMullen, B.
  • Zhang, Lei
  • Nakahara, Kyle

Abstract

A vehicle-miles traveled (VMT) tax is frequently mentioned as viable alternative to a fuel tax for collecting highway users fees from light vehicles. Both a static model and a regression based model are used here to assess the distributional impacts of a switch from a fuel tax to a VMT tax for the state of Oregon. The VMT tax is found to be slightly more regressive than the fuel tax and rural households are found to actually benefit relative to urban households under a VMT tax. Two alternative VMT structures that might increase incentives to use more fuel efficient vehicles are provided, but both are found to be even more regressive than a flat VMT tax.

Suggested Citation

  • Starr McMullen, B. & Zhang, Lei & Nakahara, Kyle, 2010. "Distributional impacts of changing from a gasoline tax to a vehicle-mile tax for light vehicles: A case study of Oregon," Transport Policy, Elsevier, vol. 17(6), pages 359-366, November.
    • Handle: RePEc:eee:trapol:v:17:y:2010:i:6:p:359-366
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    1. Ke, Yue & McMullen, B. Starr, 2017. "Regional differences in the determinants of Oregon VMT," Research in Transportation Economics, Elsevier, vol. 62(C), pages 2-10.
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    10. Yang, Di & Kastrouni, Eirini & Zhang, Lei, 2016. "Equitable and progressive distance-based user charges design and evaluation of income-based mileage fees in Maryland," Transport Policy, Elsevier, vol. 47(C), pages 169-177.
    11. Burris, Mark & Lee, Sunghoon & Geiselbrecht, Tina & Baker, Richard & Weatherford, Brian, 2015. "Equity Evaluation of Sustainable Mileage-Based User Fee Scenarios," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 54(1).
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    18. Pratik Verma & Shaurya Agarwal & Pushkin Kachroo & Anjala Krishen, 2017. "Declining transportation funding and need for analytical solutions: dynamics and control of VMT tax," Journal of Marketing Analytics, Palgrave Macmillan, vol. 5(3), pages 131-140, December.
    19. Zhang, Lei & Hong, Jin Hyun & Nasri, Arefeh & Shen, Qing, 2012. "How built environment affects travel behavior: A comparative analysis of the connections between land use and vehicle miles traveled in US cities," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 5(3), pages 40-52.
    20. Carlton, Justin & Burris, Mark, 2014. "Comprehensive Equity Analysis of Mileage-Based User Fees: Taxation and Expenditures for Roadways and Transit," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 53(2).
    21. Sun, Zhentian & Li, Xuhong & Xie, Yuanchang, 2014. "A comparison of innovative financing and general fiscal investment strategies for second-class highways: Perspectives for building a sustainable financing strategy," Transport Policy, Elsevier, vol. 35(C), pages 193-201.

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