Self-Financing Highway Pricing Scheme Using State Highway Cost Allocation Study

Distance-based highway pricing scheme has recently been considered as a potential means of tackling highway revenue shortfall problem, which occurred under the current structure of fuel-tax-based funding scheme. In determining optimal fee rates of distance-based pricing scheme, the present study applies the concept of self-financing highway system. Self-financing highway system is advocated by the fact that each unit of highway usage is associated with a different level of highway cost depending on its vehicle class, road functional class, geographical location, and so forth. The present paper aims to find the optimal fee rates that reflect cost responsibility of each highway user, using Highway Cost Allocation Study (HCAS) tool. HCAS is a methodological framework that analyzes expenditures, revenues, and usages that are associated with a highway system in order to obtain cost responsibility of various user groups. State HCAS Tool, a spreadsheet-based analytic tool developed by FHWA, applies the framework for state highway systems. By updating inputs and state-specific parameters, the present study conducts HCAS for the highway system in Indiana. Cost allocation process, however, entails several assumptions on critical parameters such as load equivalency factors, non-load-related impacts on pavement, minimum requirements for construction and rehabilitation, etc. In this regard, the study uses a generally acceptable range for each input parameter and performs sensitivity analysis. The results of sensitivity analysis provide ranges of cost responsibility, and therefore, unit fee rates of a distance-based pricing scheme for each vehicle class and road functional class combination.

• Corporate Authors:

  Transportation Research Board

  500 Fifth Street, NW
  Washington, DC  United States  20001
• Authors:
  • Oh, Jung Eun
  • Sinha, Kumares C
• Conference:
  • Transportation Research Board 87th Annual Meeting
  • Location: Washington DC, United States
  • Date: 2008-1-13 to 2008-1-17
• Date: 2008

Language

• English

Media Info

• Media Type: DVD
• Features: Figures; References; Tables;
• Pagination: 22p
• Monograph Title: TRB 87th Annual Meeting Compendium of Papers DVD

Subject/Index Terms

• TRT Terms: Cost allocation; Distance based fares; Finance; Financing; Revenues; Road pricing
• Identifier Terms: Highway Cost Allocation Study
• Uncontrolled Terms: Shortfalls
• Subject Areas: Finance; Highways; I10: Economics and Administration;

Filing Info

• Accession Number: 01095577
• Record Type: Publication
• Report/Paper Numbers: 08-2256
• Files: TRIS, TRB
• Created Date: Apr 28 2008 9:33AM