"Mileage fees...MILEAGE FEES?...NOOOOO" (source: Wikimedia Commons)
A report released today by the University of Michigan offers a novel solution for Michigan's dilapidated roads: the state should adopt a mileage fee to boost infrastructure funding.
Mileage fees ... are distance-based fees levied on motorists for use of a defined network of roadways. In other words, they are a simple market-based fee for services. Mileage fees could also include time, geography or congestion levels. Instead of continuing to raise fuel taxes to pay for transportation infrastructure, a mileage fee could more fairly allocate costs based on the number of miles driven, the time of day, the route taken, and the weight of the vehicle.
A mileage fee can boost funding shortages, increase public and institutional cost effectiveness and support environmental sustainability, the report says. We can only assume the latter point means more drivers may opt to catch the bus if such a fee is implemented.
You can read the full report below.
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