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From gallons to miles: A disaggregate analysis of automobile travel and externality taxes

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  • Langer, Ashley
  • Maheshri, Vikram
  • Winston, Clifford

Abstract

Policymakers have prioritized increasing highway revenues as rising fuel economy and a fixed federal gasoline tax have led to highway funding deficits. We use a novel disaggregate sample of motorists to estimate the effect of the price of a vehicle mile traveled on VMT, and we provide the first national assessment of VMT and gasoline taxes that are designed to raise a given amount of revenue. We find that a VMT tax dominates a gasoline tax on efficiency, distributional, and political grounds when policymakers enact independent fuel economy policies and when the VMT tax is differentiated with externalities imposed per mile.

Suggested Citation

  • Langer, Ashley & Maheshri, Vikram & Winston, Clifford, 2017. "From gallons to miles: A disaggregate analysis of automobile travel and externality taxes," Journal of Public Economics, Elsevier, vol. 152(C), pages 34-46.
    • Handle: RePEc:eee:pubeco:v:152:y:2017:i:c:p:34-46
    DOI: 10.1016/j.jpubeco.2017.05.003
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    References listed on IDEAS

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