Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • New round of Paycheck Protection Program funding opens
      Vaccine may usher sense of normalcy
      Cover-up: More retailers requiring face masks to curb COVID
      USW alleges COVID-19 violations at Kumho plant
    • Denso hires Joseph Wright as operations director
      Johnson named president, managing partner of Arnold Motor Supply
      Conti starts production of ‘HL' load index tires for select OE customers
      GM banking on 'BrightDrop' EV to build commercial van business
    • Q3 results disappoint for Monro, but business is trending up
      Hankook, Revvo team up to trial 'smart' tire technology in California
      ITC votes to keep duties in place on China P/LT tire imports
      NLRB certifies USW as bargaining unit for Kumho plant in Georgia
    • Goodyear, ConMet to develop tire/wheel-end digital analytics system
      Hankook, Revvo team up to trial 'smart' tire technology in California
      Love's plans to add over 30 stores in 2021 with Truck Care/Speedco services
      Linglong planning U.S. launch of 'Hubtrac' truck tire brand in 2021
    • ITC votes to keep duties in place on China P/LT tire imports
      Hwa Fong joins Taiwan tire makers' bid for alternative to import duties
      New stimulus package fixes PPP loan confusion
      USW opposes Taiwan tire makers' dumping counterproposal
    • Nokian's latest studded winter tire line to be available this summer
      Goodyear to install dynamic driving simulator at Luxembourg site
      ITC votes to keep duties in place on China P/LT tire imports
      Air France renews tire supply deal with Michelin
    • New NASCAR, F1 tire designs delayed due to COVID
      U.K. race series extends contract with Goodyear through 2026
      Goodyear Racing staying on track
      General Tire Canada renews sponsorship deal with Raceline Network
    • Nokian's latest studded winter tire line to be available this summer
      Hunter adds ‘FastBlast' bead-seating for LT/SUV tire changing
      Linglong planning U.S. launch of 'Hubtrac' truck tire brand in 2021
      Hankook doubles size range of Ventus V2 all-season UHP line
    • Q3 results disappoint for Monro, but business is trending up
      TIA to offer retail store leadership training course 5 times in 2021
      Updated ALI lifting points guide covers vehicle model years 2000-2021
      VIP Tires opens 20th store in New Hampshire, in Keene
    • Updated ALI lifting points guide covers vehicle model years 2000-2021
      Hunter adds ‘FastBlast' bead-seating for LT/SUV tire changing
      Johnson named president, managing partner of Arnold Motor Supply
      AMRA to host 5 educational webinars in Feb., March
    • WTC hosting webinar Jan. 20 on load-capacity standards
      Denver's Brian Sump named AAPEX Shop Owner of the Year
      DUB, TIS Wheels founder Myles Kovacs is SEMA Person of the Year
      AAPEX: Using social media to promote your business
    • New stimulus package fixes PPP loan confusion
      Vaccine may usher sense of normalcy
      2020 Review: PPP loans give boost to small businesses
      Latest COVID relief bill includes $325B in small-business support
    • Hankook, Revvo team up to trial 'smart' tire technology in California
      ITC votes to keep duties in place on China P/LT tire imports
      Nokian Tyres to add up to 150 jobs at U.S. factory
      Hwa Fong joins Taiwan tire makers' bid for alternative to import duties
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      An introduction to wheel balancing
      Wheel weights: Balancing form with function
      Choosing the right balancing equipment
    • Video: Demounting
      An introduction to demounting, mounting and inflation
      Staying safe when demounting and mounting tires
      Demounting Equipment
    • Video: Safety
      Introduction: Creating a culture of safety
      Protecting your people with proper hygiene
      Making friends with OSHA
    • Video: Tire Repair
      An introduction to tire repair
      How to properly patch a puncture
      Tire repair: Shining a light on visual inspections
    • Video: TMPS Service
      An introduction to TPMS service
      The importance of proper relearn procedures
      Decoding sensor data for TPMS diagnosis
    • Video: Training
      Intro: Finding and training technicians
      Shop Floor: Scholarships
      Advantages of apprentice program partnerships
    • Video:Vehicle Lifting
      An introduction to lifts and lift safety
      Recommendations for using a jack
      Jack stands for commercial tire service
    • Video: Wheel Torque
      Introduction to proper wheel installation
      Torque check and recheck recommendations
      Using torque sticks to speed service times
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
November 11, 2015 01:00 AM

Report examines costs of fuel tax vs. road user charge

Tire Business Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    SAN JOSE, Calif. (Nov. 11, 2015) — With debate continuing about the funding shortfall for U.S. highways, government agencies are looking at various means to raise revenue.

    Two methods to address the shortfall are a vehicle fuel tax and a road user charge. But which one will cost more per household? Researchers at the Mineta Transportation Institute (MTI) have conducted a comparative analysis of the issues. Their peer-reviewed report, “Household Income and Vehicle Fuel Economy in California,” found that the differences are minimal, according to MTI.

    The principal investigator was Christopher E. Ferrell, PhD, working with David B. Reinke. The free report can be downloaded by clicking here.

    “The current per-gallon fuel tax is no longer keeping up with highway funding needs,” Mr. Ferrell said, “because vehicles can travel much farther on a single gallon of fuel. But it has been difficult to convince voters to increase that tax.

    “If revenue were based on a fee per mile traveled, it could be more realistic. But would it be a disadvantage to particular income groups or to those who live in rural areas? That was the basis of our study.”

    The MTI report — which includes eight tables illustrating the findings — addresses four primary results from the research:

    • Daily household fuel consumption and vehicle miles traveled (VMT) both appear to increase with increasing household income.
    • Urban and rural households show roughly the same amount of fuel consumption and VMT.
    • Although the researchers found some slight differences in estimated costs over different income groups and rural vs. urban households, they found no statistically significant difference among income groups between a vehicle fuel tax and a road user charge.
    • These results are based on sample data and are therefore subject to sampling errors in the data. Fuel efficiency for vehicles of the same make, model, model year and engine type will differ because of several differences, including maintenance, driving cycles, vehicle loads and fuel type — regular vs. premium.

     

    “It is important to note that other aspects to these alternatives should be examined to provide complete information for decision makers,” Mr. Ferrell said. “For example, a fuel tax is an across-the-board tax that applies equally to all vehicles, regardless of size or weight.

    “On the other hand, a road user charge could be based on vehicle class, which would more fairly assess different vehicle classes for the actual wear and tear they impose on the road system.”

    The analysis was based on two data sources: the California Household Travel Survey from 2010-2011, which covered a statewide sample of households; and the Environmental Protection Agency (EPA) database on vehicle fuel efficiency.

    Mr. Ferrell began his planning career in 1995 with the Metropolitan Transportation Commission (MTC). Since 2000 he has been a transportation consultant, and in 2010 he co-founded CFA Consultants, a transportation planning and research firm.

    Mr. Reinke began his planning career in 1973 with the London Borough of Camden, where he worked on a livable neighborhoods plan, priority bus lanes and development of a traffic-monitoring program. Since then he has worked for Crain & Associates, BART, Dowling Associates, and Kittelson & Associates.

    MTI conducts research, education and information transfer programs regarding surface transportation policy and management issues, especially related to transit. Congress established MTI in 1991 as part of the Intermodal Surface Transportation Efficiency Act (ISTEA). The institute, which won national re-designation competitions in 2002, 2006 and 2012, is funded through the U.S. Department of Transportation, the U.S. Department of Homeland Security, the California Department of Transportation and public and private grants. MTI's international board of trustees represent all major surface transportation modes.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • List Rental
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION