Wednesday, November 15, 2023
8:30 AM - 10:00 AM
State-Level Transportation Re-pricing for Carbon Reduction and Equity
Session ID
A7 - Lightning: Transportation
Allen Greenberg

This presentation would share results from a major Federal Highway Administration (FHWA) study that is creating a “State-Level Transportation Re-Pricing for Carbon Reduction & Equity Toolkit.” Being examined is a range of potential “low hanging fruit” policy changes designed to bring about substantial voluntary reductions in household driving by shifting fixed driving and parking costs to variable usage-based pricing. Specific pricing and incentive strategies that do not add to overall tax and cost burdens for drivers being assessed include: state mandates of pay-per-mile car insurance; state laws requiring employers to offer a parking cash-out option in lieu of subsidized car parking when they choose to offer the latter; and converting to mileage charges state sales taxes on newly purchased vehicles, annual vehicle registration fees, and the portion of general tax revenues going towards state government highway system investments. The research is designed to provide states information on the potential of transportation re-pricing strategies, individually and as a single bundle, to enhance equity and reduce greenhouse gas emissions along with other driving-related externalities. By rolling up state-level findings into national results, the analysis could also offer information to Federal policymakers interested in promoting the carbon reduction strategies being modeled. As an illustration of expected impacts, a similar bundle of price-shifting strategies was previously modeled (see: that was less expansive than the bundle currently being assessed by FHWA (and, thus, the forthcoming findings are likely to show higher benefits). The previously modeled bundle included only these three of the five policies that FHWA is currently modeling: pay-per-mile car insurance, a parking cash-out requirement for employer-subsidized parking, and the conversion of state sales taxes on newly purchased vehicles to mileage fees. Reductions of 23.2% nationwide in mileage and related carbon emissions were projected for 2030.

Supporting Document 1