Why Not Apply the User Pay Principle to Road Users? A Case for Road Pricing


Who Pays for Roads? – How the “Users Pay” Myth Gets in the Way of Solving America’s Transportation Problems (45 page pdf, Tony Dutzik and Gideon Weissman, Phineas Baxandall, Frontier Group U.S. PIRG Education Fund, May 5, 2015)

Also discussed here: Report: 21st Century Transportation (Press Release, Frontier Group U.S. PIRG Education Fund, May 5, 2015)

Today we review an analysis of road costs in the USA (also applies to Canada) which shows increasingly that the tax on fuel for vehicles pays less and less of the overall costs for roads which include construction and maintenance, snow clearance, the health costs of air pollution from vehicle emissions, etc that amount to $10 to $40 B/ year attributable to driving. This is more than the costs of transit, passenger rail travel, cycling and walking combined. The balance of the costs not funded from gas taxes is borne by property taxes and general tax revenue which, in cities such as Ottawa, Canada’s capital, is more than the cost of police services or public transit. This is a clear call for road pricing which would relieve the tax burden of those who do not use roads and go beyond flat and partially subsidized road tolls.

user pay for roads

To see Key Quotes and Links to key reports about this post, click HERE

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