From gallons to miles

A disaggregate analysis of automobile travel and externality taxes

Ashley A Langer, Vikram Maheshri, Clifford Winston

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Policymakers have prioritized increasing highway revenues as rising fuel economy and a fixed federal gasoline tax have led to highway funding deficits. We use a novel disaggregate sample of motorists to estimate the effect of the price of a vehicle mile traveled on VMT, and we provide the first national assessment of VMT and gasoline taxes that are designed to raise a given amount of revenue. We find that a VMT tax dominates a gasoline tax on efficiency, distributional, and political grounds when policymakers enact independent fuel economy policies and when the VMT tax is differentiated with externalities imposed per mile.

Original languageEnglish (US)
Pages (from-to)34-46
Number of pages13
JournalJournal of Public Economics
Volume152
DOIs
StatePublished - Aug 1 2017

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Externalities
Automobile
Tax
Gasoline tax
Politicians
Revenue
Funding

Keywords

  • Driver heterogeneity
  • Gasoline tax
  • VMT tax

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

Cite this

From gallons to miles : A disaggregate analysis of automobile travel and externality taxes. / Langer, Ashley A; Maheshri, Vikram; Winston, Clifford.

In: Journal of Public Economics, Vol. 152, 01.08.2017, p. 34-46.

Research output: Contribution to journalArticle

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