ABSTRACT
This chapter is an opportune time for a thorough re-assessment of federal transportation policy. Externalities provide a rationale for government policy interventions, one form of which is to effectively reflect these broader social impacts in the prices or costs individuals face. The problems of infrastructure finance in the United States have occupied several national commissions and untold policy commentaries. In principle, a tax on vehicle miles traveled (VMT) is the most effective disincentive to use motor vehicles. The state of Oregon has led the way with extensive experiments examining implementation strategies based on tax collection at time of refueling, while the United Kingdom and the Netherlands have seriously considered nationwide VMT taxes based on Global Positioning System (GPS) technology. Long-standing pollution control measures, especially those deriving from the Clean Air Act, recognize several key air pollutants from motor vehicle emissions: especially fine particulates, volatile organic compounds, nitrogen oxides, carbon monoxide, and sulfates.
