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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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    11. McMullen, B. Starr & Eckstein, Nathan, 2013. "Determinants of VMT in Urban Areas: A Panel Study of 87 U.S. Urban Areas 1982-2009," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 52(3).
    12. Berri, Akli & Vincent Lyk-Jensen, Stéphanie & Mulalic, Ismir & Zachariadis, Theodoros, 2014. "Household transport consumption inequalities and redistributive effects of taxes: A repeated cross-sectional evaluation for France, Denmark and Cyprus," Transport Policy, Elsevier, vol. 36(C), pages 206-216.
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    15. Berri, Akli & Vincent Lyk-Jensen, Stéphanie & Mulalic, Ismir & Zachariadis, Theodoros, 2014. "Household transport consumption inequalities and redistributive effects of taxes: A repeated cross-sectional evaluation for France, Denmark and Cyprus," Transport Policy, Elsevier, vol. 36(C), pages 206-216.
    16. 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.
    17. 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).
    18. Jean-Philippe Meloche, 2019. "Towards a New Era in Road Pricing? Lessons from the Experience of First Movers," CIRANO Working Papers 2019s-35, CIRANO.
    19. Mollanejad, Mostafa & Zhang, Lei, 2014. "Incorporating spatial equity into interurban road network design," Journal of Transport Geography, Elsevier, vol. 39(C), pages 156-164.
    20. 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.
    21. Welch, Timothy F. & Mishra, Sabyasachee, 2014. "A framework for determining road pricing revenue use and its welfare effects," Research in Transportation Economics, Elsevier, vol. 44(C), pages 61-70.

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