A Comparative Analysis of Road Financing Approaches in Europe and the United States

Road infrastructure has a remarkable economic and social impact on society. This is the reason why road financing has always drawn the attention of policy makers, especially when resources available for government spending become scarce. Nations exhibit differing approaches toward dealing with road transportation financing. In the United States, the current system of road financing has been called into question, for some regard it as insufficient to meet the necessary amounts required for road expenditure. By contrast, in most European countries, road charges are very high, but are not earmarked for the funding of roads. This paper analyzes, the balance between charging for the use of, and expenditure on, the road sector in the United States, and compares the American policy with those of several European countries (Germany, United Kingdom, France, Spain, and Switzerland). To that end, the authors define a methodology to calculate the annual amount of fee-charges levied on light and heavy vehicles in the selected countries, in order to compare those charges with the annual road expenditure. The results show that road charges in America are noticeably lower than those paid in Europe. Additionally, the research concludes that, in Europe, road-generated revenues exceed road expenditure in all countries studied, so road charges actually subsidize other policies. By contrast, in the United States the public sector subsidizes the road system in order to maintain the current level of expenditure.

• Supplemental Notes:
  • This paper was sponsored by TRB committee ABE10 Revenue and Finance.
• Corporate Authors:

  Transportation Research Board

  500 Fifth Street, NW
  Washington, DC  United States  20001
• Authors:
  • Gomez, Juan
  • Vassallo, José Manuel
• Conference:
  • Transportation Research Board 92nd Annual Meeting
  • Location: Washington DC, United States
  • Date: 2013-1-13 to 2013-1-17
• Date: 2013

Language

• English

Media Info

• Media Type: Digital/other
• Features: Appendices; Figures; References; Tables;
• Pagination: 19p
• Monograph Title: TRB 92nd Annual Meeting Compendium of Papers

Subject/Index Terms

• TRT Terms: Alternatives analysis; Financing; Highways; Road pricing; Subsidies; User charges
• Geographic Terms: Europe; United States
• Subject Areas: Finance; Highways; I10: Economics and Administration;

Filing Info

• Accession Number: 01475170
• Record Type: Publication
• Report/Paper Numbers: 13-1147
• Files: TRIS, TRB, ATRI
• Created Date: Mar 14 2013 9:34AM