Addressing the Social Costs of Driving Through a Vehicle Miles Traveled Fee

No comprehensive climate policy can achieve its goals without addressing the transportation sector – the number one source of greenhouse gas (GHG) emissions in the United States.

A well-designed clean transportation policy can do more than reduce GHG emissions, it can mitigate billions of dollars in economic harms from freight and passenger transportation, by reducing local air pollution (which disproportionately burdens disadvantaged communities), stalling the ever-increasing trend in traffic congestion, and diminishing motor-vehicle related fatalities. A new report, published this last fall by the Institute for Policy Integrity, A Pileup: Surface Transportation Market Failures and Policy Solutions, analyzes these social costs, and as one option, proposes transitioning transportation funding toward a vehicle miles traveled tax.

ITIF and the Institute for Policy Integrity hosted a discussion about the report and the path to a road user pricing system.