On user charges for highway financing

At both the federal and state levels, the main source of highway infrastructure financing has been from road-user charges, particularly in the form of fuel taxes. Although there are widespread differences from state to state in highway user charge structures, the form of these structures, in most states, has remained basically unchanged ever since such charges were introduced several decades ago. Changes in vehicle characteristics and usage, economic changes and concerns of energy conservation, and environmental protection have made an impact on the methods of user charges that have been traditionally used. This paper surveys current practices of user charges in the U.S. and reviews their appropriateness in the light of the changes that have occurred and would continue to occur in the next decade or even in the next century. A possible future policy direction on highway user charge structure that can incorporate the technological and other emerging developments is then examined.