Estimating the impacts of a vehicle mileage fee using a discrete continuous choice modeling approach Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/9019s476s

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  • The gasoline tax, the main source of highway revenue is no longer a viable source of funding to maintain the existing highways. Many states in the United States are already using revenues from other sources such as sales tax and income tax to fund new highways. Oregon along with many other states is looking into other alternatives such as a distance based mileage fee to generate sufficient highway revenues. The technology required to achieve this has already been tested in Portland. One of the greatest concerns of a vehicle mileage fee is its impacts on the lower income groups and rural households. Critics argue that a distance based fee might discourage the use of fuel efficient vehicles. The objective of this study is to evaluate these socio economic impacts of shifting from a gasoline tax to a vehicle mileage fee on Oregon households using a discrete continuous choice modeling approach (DCC). DCC is a disaggregate modeling approach and has dominated the recent vehicle ownership models due to its ability to model the distributional and behavioral effects of an individual. The empirical results indicate that the vehicle mileage fee is only slightly more regressive than a gasoline tax and it increases the social welfare of higher income groups and the people living in the urban areas. The impact of VMT fee on the household's preference to own fuel efficient vehicles did not produce consistent results due to insufficient data. Overall, the DCC approach proved to be an effective tool in estimating the impacts and future research could be carried out in this direction.
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