2013 Session: 296

• Financial Evaluation of Mileage-Based User Fee: State of Florida Case Study
  Abstract: Fuel taxes, assessed on a per gallon basis, have been the major source of transportation funding for the past century. Despite increasing travel demand, aging infrastructure, soaring construction, operation and maintenance costs, and improved fleet fuel economy, the federal fuel tax rates have remained unchanged since 1993. It is recognized that the current fuel taxing regime will not be sustainable in the long term. Given the concerns over the future fuel tax revenues and highway funding, a new mileage based user fee (MBUF), based on the actual vehicle miles traveled (VMT) needs to be explored. Successful regional pilot MBUF projects have investigated the technological, institutional, operational and implementation aspects of an MBUF.In light of above stated observations, this study sets out to assess the financial impacts of conversion to an MBUF for the State of Florida. Several strategies including: Time of Day, Area Type, Facility Type, and Congestion Level pricing are financially assessed. An aggregate uni-variant time series model is constructed to forecast the analysis period annual VMT based on the historical data. A robust financial model is designed to estimate the annual net revenues associated with various pricing scenarios.Despite much higher cost of collection and administration, the MBUF (in lieu of the current per gallon taxes) is found to not only generate substantially more revenues, but also could assist in travel demand management by reducing congestion level and environmental impact of urban peak period travel.
  Authors: Al-Deek, Haitham M.; Moradi, Massoud
  Authors: Al-Deek, Haitham M.; Moradi, Massoud
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-0332
• Funding Urban Transport in New York: Revenue Potential of VMT and Carbon Taxes in New York State
  Abstract: One the prime engines of transport financing in the US has been fuel taxes. Yet States with a high proportion of urbanization tend to raise less revenue through that means because of lower fuel use due to the higher mass transit use. Nowhere is this more of an issue than in New York State, home to New York City where half of the transit trips in the US take place. This paper examines options that New York can use to make up for this structural funding problem and achieve desired environmental policy goals as well. VMT and Carbon charges are given special attention. The paper concludes with implications for funding reforms nationwide.
  Authors: Gordon, Cameron Elliott; Peters, Jonathan Richard
  Authors: Gordon, Cameron Elliott; Peters, Jonathan Richard
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-0443
• Assessment of Social Dimensions of Sustainable Innovative Financing in Transportation Infrastructure Projects
  Abstract: While traditional financing approaches such as federal and state grants funded by taxation are insufficient to address the existing need, innovative financing such as novel public private partnership models, credit enhancement tools, and new bonding instruments has emerged to expand the fiscal space of public agencies for infrastructure development. Formulating innovative financing approaches is one of the challenges of policymakers to address the ever growing need for restoring the close to failing civil infrastructure in the U.S. Public support/opposition is one of the major drivers/disruptors of innovative financing. Since, public response to innovative financing of infrastructure is affected by the social attitudes, such as public knowledge, awareness, and perception, the assessment of social attitudes is a major component towards developing sustainable infrastructure financing policies. However, there are a few priori studies related to social attitudes regarding innovative financing of infrastructure. The objective of this paper is to assess social attitudes and their implications in policy making related to innovative financing of civil infrastructure. The effects of: (a) economic factors (economic production and unemployment), (b) infrastructure conditions (such as structural condition of infrastructure facilities) and (c) personal characteristics (such as income, gender and education) on the knowledge, awareness, perceptions, and attitudes of the public regarding infrastructure development and financing are assessed. Binary probit and ordered probit models are developed using data collected from 50 states in the U.S. The significant variables affecting the dimensions of social attitudes of the public regarding infrastructure development and financing are identified through this study. The findings of the study revealed that the probability of public support of innovative financing will increase if: (i) the need for infrastructure is significant; (ii) projects are delivered without time and cost overruns; (iii) the benefits of innovative financing are linked with protection against natural disasters; and (iv) the public is informed about the success of innovative financing in other states and in other developed countries. Infrastructure sponsor organizations could benefit from the findings of this study to take the following proactive measures: (1) educating the public to enhance the public knowledge and awareness; and (2) designing financing structures that are consistent with the social attitudes of the public. Conducting these proactive measures by public agencies could ultimately enhance the creation and diffusion of innovative financing to address the need for restoring the infrastructure systems. The study presented in this paper is novel with respect to systemic exploration of the impacts of economic factors, infrastructure conditions, project characteristics, and personal characteristics on the public knowledge, awareness, perception, and attitude towards infrastructure financing.
  Authors: Mostafavi, Ali; Abraham, Dulcy Mary; Vives, Antonio
  Authors: Mostafavi, Ali; Abraham, Dulcy Mary; Vives, Antonio
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-0664
• Transportation Infrastructure Funding with an Electrified Fleet
  Abstract: Transportation infrastructure funding has long relied on user fees assessed on gasoline consumption. These fees have lost purchasing power as they have not tracked inflationary pressures and increasing numbers of fuel efficient vehicles further erodes the vital source of revenue. The emergence of alternative fueled vehicles powered with new energy sources will exacerbate the long term trend of limited funding for critical infrastructure maintenance.Electric vehicles (EVs) are a type of alternative fueled vehicle offering the potential for enhanced environmental and economic well-being through reduced air emissions, lower energy costs, and increased energy security. EVs can be easily charged at home to meet most daily travel needs and are starting to gain in number on our nation’s highways. Current impediments of high initial purchase prices and shorter ranges of operation are expected to decrease as incremental improvements to the underlying technologies drive down costs and increase range.This paper reviews the history of the most important current transportation user fee, the motor fuels tax, and considers criteria for funding mechanisms applicable to alternative fuel vehicles, such as Vehicle Miles of Travel (VMT) user fees. Electric utility tariffs on EV electric use are proposed as an acceptable transition from the gas tax to regulated utility rates for EV contributions to infrastructure funding.Vermont’s transportation system is used as an example of how EV related transportation funding prospects could be implemented at the state level.
  Authors: Roberts, David
  Authors: Roberts, David
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-0682
• Comparative Analysis of Road Financing Approaches in Europe and the United States
  Abstract: Road infrastructure has a remarkable economic and social impact on society. This is the reason why road financing has always drawn the attention of policy makers, especially when resources available for government spending become scarce. Nations exhibit differing approaches toward dealing with road transportation financing. In the United States, the current system of road financing has been called into question, for some regard it as insufficient to meet the necessary amounts required for road expenditure. By contrast, in most European countries, road charges are very high, but are not earmarked for the funding of roads. This paper analyzes, the balance between charging for the use of, and expenditure on, the road sector in the United States, and compares the American policy with those of several European countries (Germany, United Kingdom, France, Spain, and Switzerland). To that end, we define a methodology to calculate the annual amount of fee-charges levied on light and heavy vehicles in the selected countries, in order to compare those charges with the annual road expenditure. The results show that road charges in America are noticeably lower than those paid in Europe. Additionally, the research concludes that, in Europe, road-generated revenues exceed road expenditure in all countries studied, so road charges actually subsidize other policies. By contrast, in the United States the public sector subsidizes the road system in order to maintain the current level of expenditure.
  Authors: Gomez, Juan; Vassallo, José Manuel
  Authors: Gomez, Juan; Vassallo, José Manuel
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-1147
• Minimizing the Impacts of Cost and Revenue Uncertainties on Transportation Project Delivery
  Abstract: A process improvement effort is well underway at the Wyoming Department of Transportation to optimize the delivery of highway projects. Specifically, the focus of the effort is to manage the risks of project cost and revenue uncertainties over the long-term, in order to deliver projects on time and as intended. The goal is to maximize the successful delivery of projects that have been planned 6 to 8 years in advance. The results of this work will provide WYDOT and other transportation agencies with great leverage in achieving performance targets, by delivering more projects on time, with the performance benefits anticipated in the initial selection of the projects. The approach considers various funding scenarios, with plausible uncertainties, and examines candidate methods to mitigate the impacts of these. For example, due to mismatches between projected and actual funding in the intended years of delivery, some projects may suffer costly delays due to a lack of funding, or need to be accelerated in order to spend excess revenue. Understanding these potential outcomes has enabled process improvements to be developed. The results of the effort are enabling WYDOT to maximize the performance benefits anticipated in their asset management efforts. The department will now be able to better manage the amount and mix of transportation projects in the project pipeline, with estimated benefits of between 5 and 10%. In summary, this work will provide information that project planners can use to improve on-time project deliveries and maximize their achievement of performance targets over the long-term.
  Authors: Redd, Larry
  Authors: Redd, Larry
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-1599
• Fuel Tax Refund Policy and Process Review of States
  Abstract: The primary source of funding for transportation infrastructure is a tax imposed on motor fuels. One aspect of fuel tax collections requires consumers to apply for refunds of taxes paid on fuels used for tax-exempt purposes. Fuel tax refund is a complex process and one of the many ways tax evasion occurs. Fuel tax evasion has been the focus of many studies, however, only a few have focused on tax evasion through the refund process. Fuel tax refund policies of states are being updated regularly in order to curb evasion and to make the process efficient. The Montana Department of Transportation has expressed concern over the possibility of fraud, errors, and inefficiencies in the current fuel tax refund process. This paper presents an evaluation of the fuel tax refund process of Montana by comparing it with neighboring states that have a similar fuel tax refund process. The study includes general fuel tax refund process, eligibility of fuel and refund, refund process, and identified tax evasion. Lessons learned such as allowing only one year to submit refund claims, bulk purchase for agriculture, and died diesel for any off-road use will help states to improve their fuel tax refund process and curb fuel tax evasion.
  Authors: Chaudhari, Jaydeepkumar P; McGowen, Patrick Tracy; Booth, Janelle; Church, Brian
  Authors: Chaudhari, Jaydeepkumar P; McGowen, Patrick Tracy; Booth, Janelle; Church, Brian
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-1354
• Long-Term Motor Fuel Tax Revenue Projections in Georgia
  Abstract: This paper discusses the results of a model built to capture the effect of how demographic, economic, environmental, and technological changes could affect Georgia’s future motor fuel tax revenue. Currently, fuel tax revenue is the major funding source for many transportation agencies; however, in recent years, inflation and fuel economy increases have decreased the revenue generated by fuel taxes. The model was intended to be a tool to allow users to project long-term revenue and observe how adjustments to different pricing and socioeconomic inputs affect future revenue under both Georgia’s current fuel tax structure and alternative revenue mechanisms. The model projects that Georgia’s fuel tax revenue will continue to increase through 2020 but will decline between 2020 and 2030 due mainly to improvements in vehicle technology. To combat these revenue declines, the model also estimates how much revenue would be generated by increasing motor fuel tax rates or adopting alternative funding methodologies such as the VMT fee. These results indicate that Georgia could generate hundreds of millions of annual additional transportation revenue with a minimal impact to household contributions, which illustrates that leaders have options when developing sustainable funding solutions that promote fuel-efficient and livable lifestyles.
  Authors: Cherry, Phillip Warren; Meyer, Michael D.; Bui, Binh
  Authors: Cherry, Phillip Warren; Meyer, Michael D.; Bui, Binh
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-1383
• Feedback Loop Dynamics in Financial Stress Testing ofToll Road Projects
  Abstract: Large infrastructure development often requires public-private partnerships between a government agency (e.g. a DOT) that seeks to meet a public need and a profit-maximizing private developer. Different and sometimes divergent objectives of the partners can create challenges in designing and managing these projects. This paper describes a dynamic feedback simulation model of a public-private partnership to finance, design, build, and operate a toll road, in particular, a financing stress testing model that can be used by lenders to evaluate the effects of typical project characteristics on the occurrence of tipping point dynamics driving the project rapidly to either success or failure. This stress testing uses a mental model where lenders have no risk and developers have to continuously refinance the project based on the current level or risk. The model is then used to investigate the risks associated with different levels of project characteristics including government subsidies. Results illustrate the need to understand and exploit project feedback loops in public-private partnerships projects.
  Authors: Damnjanovic, Ivan D.; Ford, David; Scott, Johnson
  Authors: Damnjanovic, Ivan D.; Ford, David; Scott, Johnson
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-3029
• Performance-Based Framework to Include Air Quality in Mileage-Based User Fees: Framework Structure
  Abstract: The main objective of the work described in this paper was to develop an approach to utilize mileage vehicle fees to address air quality problems. To achieve this goal, a system of performance measures was created that would allow fee rates to be set based on vehicle and driver performance in a systematic manner. Two sets of performance measures were used to quantify aspects of the transportation system for the purposes of determining an MBUF rate: individual vehicle performance and behavior indicators and system-wide performance indicators. In this way, the eventual fee system reflects how well the individual performed in light of overall system needs.
  Authors: Farzaneh, Mohamadreza; Novak, Kristen; Baker, Richard Tremain; Burris, Mark W.
  Authors: Farzaneh, Mohamadreza; Novak, Kristen; Baker, Richard Tremain; Burris, Mark W.
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-3236
• Framework to Analyze Vehicle Miles Travelled Fee Implementation
  Abstract: This paper proposes a framework for a successful implementation of the vehicle miles travelled (VMT) fee. The VMT fee is looked on as an alternative to supplement the current road infrastructure financing system based mainly on the fuel-tax. The decision context for the implementation of the VMT fee projection is discussed, identifying the factors that will affect a successful implementation. This study offers the VMT fee differentiated into three categories of vehicles and three emission classes, following a trend from the European Union that motivates fleet renewal and lowers emissions. A simple case study with three scenarios based on the current fuel tax revenues illustrates the application of this VMT fee projection. Findings from this case study point out that there is a potential for VMT fees.
  Authors: Vavrova, Marketa; Chang Albitres, Carlos M.; Bína, Ladislav
  Authors: Vavrova, Marketa; Chang Albitres, Carlos M.; Bína, Ladislav
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-2915
• Local Funding Options for Public Transportation
  Abstract: This paper describes the results of a study that identified and evaluated potential local funding options to help finance public transit improvements. It evaluates seventeen options according to eight criteria. This is a somewhat larger set of funding options and more detailed and systematic evaluation process than most previous studies of this type. This research discovered no new options that are particularly cost effective and easy to implement; each option has disadvantages and constraints. As a result, the overall conclusion of this study is that a variety of funding options should be used to help finance the local share of public transit improvements to insure stability and distribute costs broadly.
  Authors: Litman, Todd Alexander
  Authors: Litman, Todd Alexander
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-3125
• Seeking New Revenues to Finance Transportation Investments: Placing Tolls on Untolled Interstates and the Challenges of Estimating Changes in Demand
  Abstract: Tolls have been used as a major source of transportation finance for more than 50 years and with recent innovations in all-electronic tolling technology, tolling interstates is being considered a viable alternative transportation finance approach. A transportation financing approach being considered by State Departments of Transportation (DOTs) involves the collection of tolls on existing interstate highways on which tolls are not presently collected; however, there are challenges associated with estimating demand changes on these roadways. Central to this paper is a case study that focuses on the formulation and preliminary evaluation of a toll based financing approach potentially suitable for consideration along a segment of Interstate 93 in Boston where tolls are not currently charged. The literature and previous work show that elasticity based methods have been used and are an appropriate first step for estimating transportation demand changes. In this case study, the evaluation includes two different analysis approaches of the expected change in demand: one that takes into account the cost of congestion and one that does not. The results in this paper will guide transportation planners and analysts interested in estimating expected demand changes due to the placement of tolls on interstates not currently tolled. Moreover, these results will enhance our knowledge base concerning the analytical challenges associated with estimating demand changes on roadways that are not currently tolled.
  Authors: Berliner, Rosaria; Collura, John; Gao, Song
  Authors: Berliner, Rosaria; Collura, John; Gao, Song
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-3700
• Mileage-Based User Fees: Proposed Business Model Incorporating a System of Solutions
  Abstract: In the United States, mileage-based user fees (MBUF) are being examined as an alternative funding mechanism for motor fuel taxes due to the declining ability of motor fuel taxes to meet the need for maintaining, improving, and expanding roadway infrastructure. Numerous methodologies for implementing an MBUF program have been proposed, and in some cases tested, in several areas of the United States. Methodologies proposed range from changes in existing practices, such as tying vehicle registration fees to mileage driven, to technology intensive solutions involving global positioning satellite (GPS) system solutions. This paper examines the possibility of implementing an MBUF system by refining existing funding methods to better recognize the differences between urban, suburban, and rural roadway needs as well as the differences between revenue development for routine maintenance, rehabilitation, and expansion of roadways. How existing methodologies such as registration fees and tolling can be combined to encourage efficient use of roadway infrastructure as well as producing needed revenue is examined. In this way, the goals of the move toward MBUF, including those beyond revenue generation, can be met by combining and refining existing funding methods into an overall MBUF business model that targets each funding source to the need or needs they are most appropriate to meet.The paper proposes a business model for MBUF that can result in an overall funding source for roadway infrastructure that meets the nation's needs, is relatively simple to implement, and does not require a complete overhaul of current financing methodologies.
  Authors: Swenson, Chris Robert; Ungemah, David H.
  Authors: Swenson, Chris Robert; Ungemah, David H.
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-4217
• Decision Support System to Assess the Impacts of Placing Tolls Along Interstate Highways
  Abstract: As states continue to consider taking on more responsibility in transportation, a major issue State Departments of Transportation (DOTs) face relates to financing future transportation investments. A financing approach being considered includes the placement of tolls along selected interstate highways where tolls are not currently collected. Questions of interest to state DOT officials and transportation policy makers relate to the potential impacts of such approaches. The objective of this paper is to initiate the development of a decision support system (DSS) to assist State Departments of Transportation in the evaluation of the impacts related to placing tolls on interstate highways. Anticipated impacts include capital and operating costs to implement the required toll collection strategies and technologies; expected changes in existing demand along the interstate and alternate routes; potential toll revenue; and privacy and equity implications. With the aid of this DSS, a decisionmaker would be able to specify different toll system characteristics, add options such as desired levels of privacy and equity, and in a matter of minutes estimate capital and operating costs, forecast revenues, perform net present value and payback period analyses for alternative toll collection systems. The paper also includes an illustrative example to demonstrate the application of the DSS to assess the impacts of alternative toll approaches along a segment of Interstate 93 through Boston. The expectation is that this DSS will be expanded to evaluate other financing approaches including congestion pricing strategies, vehicle miles traveled (VMT) based fees, and innovative fuel tax schemes indexed to inflation.
  Authors: Plotnikov, Michael; Collura, John; Gao, Song; Burleson, Wayne
  Authors: Plotnikov, Michael; Collura, John; Gao, Song; Burleson, Wayne
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-3959
• Estimating the Impact on Fuel Tax Revenue fromIncreased Electric Vehicles in the Light-Vehicle Fleet
  Abstract: Advanced fuel economies in both traditional internal combustion engine vehicles (ICEs) and electric vehicles (EVs) have a strong influence on transportation revenue by reducing fuel consumption per vehicle and ultimately drawing down the amount of fuel tax revenue received. It is expected that more electric vehicles, especially gasoline hybrid electric vehicles, with higher fuel economies than ICEs will enter the roadway in coming years, and fuel tax revenues and the Highway Trust Fund will increasingly become more affected. This study estimates the impact that increased sales of EVs will have on future fuel tax revenues by drawing on industry estimates of future EV market shares and anticipates future fleet mix and fuel economy. An estimation process overview is provided and assumptions are described. Fuel tax revenue amounts that would be expected from future light vehicle fleets with increased shares of EVs are compared to equally sized fleets comprised of all ICEs, and future fleet mixes are estimated. Results show that as more electric vehicles enter the light vehicle fleet, greater revenue losses are expected and total losses from years 2011 through 2050 depend on fleet composition and fuel economy. Finally, it is found that the amount of fuel taxes paid by ICE drivers each year remain greater than fuel taxes paid by EV drivers even with advances in the average ICE vehicle fuel economy.
  Authors: Hall, Andrea Lynn; Walton, C. Michael; Jin, Jing
  Authors: Hall, Andrea Lynn; Walton, C. Michael; Jin, Jing
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-4582
• A Region Divided: Campaign for 2012 Transportation Referendum in Atlanta, Georgia
  Abstract: Following the national trend toward funding transportation with sales tax referendums, the Atlanta, Georgia metropolitan region voted on an $8.5 billion proposal in July of 2012. Despite bi-partisan and bi-racial support from the political elites and an $8 million campaign by the business community, the referendum failed with less than 40% of the vote. While just about everyone in the Metropolitan Atlanta region agrees there is a transportation problem, they do not agree on how to define the problem and therefore the solutions. An examination of three competing discourses, congestion, choice, and equity, framing transportation in Atlanta explains why the referendum failed. Polling data, participant observation, and examination of campaign materials are used to describe the interplay between the discourses and their public acceptance. Conclusions are offered on what Atlanta and other regions can do to build consensus around transportation moving forward and what this means for the growing trend of using sales tax referendums to fund transportation.
  Authors: Paget-Seekins, Laurel
  Authors: Paget-Seekins, Laurel
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-4715
• Fuel Tax Evasion via the Fuel Tax Refund Process
  Abstract: Despite data that estimates the amount of fuel tax evasion, little research has examined fuel tax evasion through the fuel tax refund process. This paper presents data analysis indicating that the fuel tax refund process, although susceptible to errors, is not heavily populated with evasion. Motor fuel taxes are excise taxes meant to benefit transportation infrastructure. But some fuel uses occur off of the roadway; for example, a farming tractor expends fuel while plowing a field; well-drilling trucks expend fuel while drilling a well; and, refrigeration units on trucks with a fuel tank separate of the primary fuel tank expend fuel powering a refrigerator pump. Arguably, users should not have to pay an excise tax for fuel used for off-road purposes. For diesel, at least, the federal government created tax-exempt, dyed diesel. But not all users are able to purchase dyed diesel, or they require another type of fuel. The federal government and some state governments provide processes for these off-road users to obtain tax credits or refunds when tax exempt fuel is unavailable, but these processes are susceptible to errors, omissions, and evasion. This paper examines data from a three-year period for three types of refunds from Montana, but the results have implications for all states. The data indicates that mathematical errors and errors relating to the forms most commonly plague the refund process. And yet, the data does not indicate that much evasion is occurring within the fuel tax refund process.
  Authors: Church, Brian V.; McGowen, Patrick Tracy; Abernathy, Craig
  Authors: Church, Brian V.; McGowen, Patrick Tracy; Abernathy, Craig
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-4944
• Determining Reasonable Toll Highway Network Scale in China
  Abstract: This research introduces a new methodology for determining the reasonable scale of tollway network in China by which addressing issues of impacts of non-debt investment, agency costs of construction and maintenance, and other cost items, user costs of travel time, debt repayment, and toll revenue on the scale of tollway network. Specifically, the proposed methodology contains a bi-level optimization model where the lower level optimization conducts network traffic assignments using O-D travel demand to obtain traffic volumes on tollway segments and the upper level optimization utilizes assigned traffic volumes as inputs to determine reasonable scale of tollway network. The bi-level model is successfully applied in a computational study to determine the reasonable expressway network scales in provinces of Jiangsu, Hebei, Shaanxi, and Jilin located in the east, north, northeastern, and western economic regions in the country. It was revealed that the current expressway network scales in all four provinces are much higher than the reasonable scales by 22 to 38 percent. All provinces face pressure of extremely high asset-debt risk. With the high asset-debt risk associated with the current national expressway network in place, the issue would become even more extensive and devastating if superimposing additional expressways according to the provincial level expressway network plan that essentially doubles the expressway network scale. It is recommended to seek alternative financial resources to reduce the funding gap and one possible solution would be to attract social capitals entering into the construction and management of expressways.
  Authors: Wang, Jianwei; Mao, Xinhua; Li, Zongzhi; Moore, Adrian T.; Staley, Samuel
  Authors: Wang, Jianwei; Mao, Xinhua; Li, Zongzhi; Moore, Adrian T.; Staley, Samuel
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-4977
• Seeking Alternative Transportation Financing Approaches in Massachusetts: Vehicle-Miles-Traveled Fee as a Supplement to Fuel Tax
  Abstract: State Departments of Transportation (DOTs) today are seeking financing alternatives so that transportation infrastructure investments can become less dependent on the amount of fuel U.S. drivers consume. Because the fuel tax in its current form is no longer viewed by many as a sustainable and stable option, other financing alternatives are being considered. One such alternative includes the vehicle miles traveled (VMT) fee. Examples of such VMT fee alternatives include: 1) collection using an onboard diagnostic system (OBD); 2) collection at the fuel pump using an OBD in conjunction with GPS technology; and 3) collection at a vehicle inspection station using the OBD. The primary objective of this paper is to evaluate these three VMT fee alternatives in terms of their benefits, challenges, and suitability for consideration in Massachusetts. A major conclusion is that a fuel tax, if increased and indexed to inflation, is a viable short term financing approach and that a VMT fee should be considered further as part of a long term strategy. It is expected that the results of this research will be of interest to State DOT personnel and policy makers seeking new financing approaches and revenue streams to support transportation investments.
  Authors: Costa, Ashley L; Plotnikov, Michael; Collura, John
  Authors: Costa, Ashley L; Plotnikov, Michael; Collura, John
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-4654
• Equity Evaluation of Fuel Tax per Gallon and VMT Fee
  Abstract: The widely suggested vehicle-miles-traveled (VMT) fee is an alternative pricing option to the current state-of-practice, the fuel tax per gallon, that has drawn great attention by researchers and policymakers, particularly regarding its equity performance among various social groups. Using socioeconomic-, geographic-, and vehicle-specific attributes from the 2009 National Household Travel Survey, the authors identified which social subgroups would mostly be affected under each pricing option, via estimation of three-stage least squares (3SLS) models at the national level. The results showed that particular social subgroups, such as households (HHs) located in states with lower fuel taxation, operate vehicles of lower fuel efficiency at the HH level and thus shoulder a larger portion of the fuel tax. On the other hand, HHs such as those that own vehicles of higher fuel efficiency, or have a higher average income, generate more trips annually, and as such would have higher VMT at the HH level. The authors also examined whether the estimated national model may apply to a smaller level of analysis, for the state of Iowa. The results suggested that, despite the similarities, the development of distinct local models was statistically supported.
  Authors: Kastrouni, Eirini; Gkritza, Konstantina; Hallmark, Shauna
  Authors: Kastrouni, Eirini; Gkritza, Konstantina; Hallmark, Shauna
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-2826
  Practice-Ready: Yes
• Financial Evaluation of Mileage-Based User Fee: State of Florida Case Study
  Authors: Al-Deek, Haitham
  Authors: Al-Deek, Haitham
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-0332
• Comparative Analysis of Road Financing Approaches in Europe and the United States
  Authors: Gomez, Juan
  Authors: Gomez, Juan
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-1147
• Minimizing the Impacts of Cost and Revenue Uncertainties on Transportation Project Delivery
  Authors: Redd, Larry
  Authors: Redd, Larry
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-1599
• Equity Evaluation of Fuel Tax per Gallon and VMT Fee
  Authors: Kastrouni, Eirini
  Authors: Kastrouni, Eirini
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-2826
• Performance-Based Framework to Include Air Quality in Mileage-Based User Fees: Framework Structure
  Authors: Burris, Mark
  Authors: Burris, Mark
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-3236
• A Region Divided: Campaign for 2012 Transportation Referendum in Atlanta, Georgia
  Authors: Paget-Seekins, Laurel
  Authors: Paget-Seekins, Laurel
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-4715
• Assessment of Social Dimensions of Sustainable Innovative Financing in Transportation Infrastructure Projects
  Authors: Darani, Ali
  Authors: Darani, Ali
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-0664
• Transportation Infrastructure Funding with an Electrified Fleet
  Authors: Roberts, David
  Authors: Roberts, David
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-0682
• Seeking New Revenues to Finance Transportation Investments: Placing Tolls on Untolled Interstates and the Challenges of Estimating Changes in Demand
  Authors: Berliner, Rosaria
  Authors: Berliner, Rosaria
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-3700
• Seeking Alternative Transportation Financing Approaches in Massachusetts: Vehicle-Miles-Traveled Fee as a Supplement to Fuel Tax
  Authors: Costa, Ashley
  Authors: Costa, Ashley
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-4654
• Fuel Tax Refund Policy and Process Review of States
  Authors: Chaudhari, Jaydeepkumar
  Authors: Chaudhari, Jaydeepkumar
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-1354
• Long-Term Motor Fuel Tax Revenue Projections in Georgia
  Authors: Cherry, Phillip
  Authors: Cherry, Phillip
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-1383
• Framework to Analyze Vehicle Miles Travelled Fee Implementation
  Authors: Vavrova, Marketa
  Authors: Vavrova, Marketa
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-2915
• Funding Urban Transport in New York: Revenue Potential of VMT and Carbon Taxes in New York State
  Authors: Gordon, Cameron
  Authors: Gordon, Cameron
  Year: 2013
  Document Type: Presentation; Poster
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-0443
• Minnesota Mileage-Based User Fee Policy Task Force
  Abstract:

  Two national commissions have encouraged the development of a mileage-based charging system as a future alternative to the fuel tax. The State of Oregon has taken the lead in testing and moving toward a limited application of mileage-based user fees, and several other states have initiated demonstrations, surveys and policy studies. This paper presents the findings and recommendations from a 2011 policy task force study in Minnesota and discusses the lessons learned from this effort. The task force concluded that fairness was a primary reason for considering a mileage-based user fee system, not just raising revenue to fund future transportation infrastructure. As vehicles become more fuel-efficient, some vehicles are paying less per mile through the gas tax for transportation services than others, and some are paying nothing at all if they drive electric vehicles.

  Authors: Munnich, Lee W.; Doan, John Q.; Johnson, Cory J.
  Authors: Munnich, Lee W.; Doan, John Q.; Johnson, Cory J.
  Year: 2013
  Document Type: Paper
  Subject: Economics; Finance; Policy
  Session: 296
  Paper Number: 13-2753