An incentive related to externalities from driving has been much focused on federal regulation that focuses on fuel efficiency and all the emissions that are emitted from different vehicles on the road. The efficiency of the vehicle was not much focused upon together with the safety of the driver and this is the reason as to why an effective response was considered to overcome all these problems. Because Long VMT (Vehicles Miles Traveled) was found to affect the environment and the safety of the drivers and the people around and this led to measures that could be used to prevent such damage from spreading. Strategies for reducing the per-mile fuel usage, emissions and crashes were to be offered as an alternative way of providing efficiency and safety on the road. This paper discusses how per road mile road tax has proven to be a benefit-maximizing rule that could be structured and encouraged in the adoption of PAYDAY insurance and VMT tax.
(Allen Greenberg 437) encourages voluntary reduction in driving as this is mostly done with the pay-as-you-drive is very crucial in matters to do with the pay per mile road tax. Pay as you drive help in reduction of congestion, air pollution that is caused by vehicles on the way and greenhouse emission that cause global warming. PAYDAYS is, in other words referred to as Pay-as-you-drive-and–save. Pay per mile road tax is useful in application of study results that are used in assessing changes on matters related to fuel prices and this strategy makes motorists to be disciplined. PAYDAYS are useful in the reduction of greenhouse gas emissions, reduction of crashes and any related insurance claim that can be a stumbling block on matters to do with pay per mile road tax. A high reduction in VMT that is recorded between 8-20% is offered by the PAYDAYS. Low-income motorist re provided with are provided with an affordable insurance that help in limiting their mileages and reduction in cost that they might have incurred in covering long mileages. This is the reason as to why many households are able to save up to 28 percent of their earnings as they can now cover short mileages compared to days before. Through use of PAYDAYS, gasoline fuel is now conserved at high measures; since it is not highly consumed as in the older days. The public is therefore glad to have had chances of enjoying such benefits that come along with the use of pay per mile road tax. The government on the other hand is very much focused on supporting the activities of PAYDAYS despite the fact that they prove to be very expensive especially in terms of controlling air pollution. One is entitled to enjoy the high benefit that comes along with PAYDAYS even without having to overcome the high political hurdle that include enacting public polies and guaranteed one freedom. PAYDAYS are the best alternative as compared to the new mileages taxes; since, they offer immediate relief on matters of paying steep fixed insurance that is somehow expensive for the low classed motorists.
All gasoline consumption vehicles are heavily taxed and thus one of the ways that the British government uses to reduce local air pollutants and even emissions of carbon dioxide to the air as it has been proven to be harmful to health (Holzman 113). The imposing of taxes to motorist’s guarantees a clean air that is not polluted and this is one way of protecting the health of the driver and the rest of the people across the globe. The government is highly focused on ensuring that the air does not get contaminated and that whoever emits gasoline to pollute the air is charged heavily. The government of Britain has raised the cost of driving and this is a good strategy of reducing congestion on the roads and lack of congestion in the highways is useful in reducing the number of accidents in roads. It is the work of the government to collect taxes from a motorist as they have to pay charges per the miles they drive and though this way they end up benefiting through the taxes they imposes. The government then uses this money in the creation of jobs for its citizens who are jobless; since, they earn up to nearly-fourth of the personal income taxes in the country. Many motorists have stopped causing congestion in fear of higher tax that will be imposed on them with regard to Ramsey component. Fuel efficiency y is one of the areas that are considered when it comes to reduction of gasoline tax and this act has led to high reduced driving. The cost of gasoline is not high as compared to optimal gasoline tax and this explains why distantly related externalities are addressed by the vehicle miles travelled. Oregon’s fuel tax was replaced by the VMT as per the road user fee task force that took place in the year 2003 (Parry, Ian and Kenneth 1277). To attain fuel efficiency and fuel tax, VMT is recommended in this area as it is highly useful in giving positive results.
VMT tax revenue is useful in funding additional policy measures that are inclusive of the vehicle emission testing expanded mass transit and all the alternative transportation systems that are opting for in times of need. VAT tax is useful in promoting mass transit and alternative transportation that is very necessary and acts as an alternative to cover distances that the motorist could not cover due to heavy taxes for using the roads. When VMT elasticity is used effectively, the VMT tax rates leads to reduction of emissions that pollutes the environment at a faster rate (Caplan, Arthur and Jordan 330). In regard to fuel cost per mile VMT is very elastic; since households have turned to increase fuel cost over time while the VMT tax rates have proven to be one way of reducing emission and in turn reducing pollution many parts of the globe. The charges that are imposed on road usage provide a good scale on matter to do with the scale of road investment and amending of roads that have been damaged by heavy trucks. The government carry’s out road pricing and this is of high benefit as they use it in maintaining the roads in a presentable way (Harry 15). Through getting taxes from the motorist, the government is in a better position of warning its road users against disobeying the set rules on the road. Through doing this they gain money from taxes and at the same time they control pollution, congestion and minimize road accidents. The Oregon officials are much concerned on the charges that will be imposed to the motorist per mile (McFall, Kathleen and Aileen 123)
In conclusion, VMT tax revenue is useful in funding additional policy measures that are inclusive of the vehicle emission testing expanded mass transit and all the alternative transportation systems that are opting for in times of need. Because Long VMT (Vehicles Miles Travelled) was found to affect the environment and the safety of the drivers and the people around and this led to measures that could be used to prevent such damage from spreading. VMT tax revenue is useful in funding additional policy measures that are inclusive of the vehicle emission testing expanded mass transit and all the alternative transportation systems that are opting for in times of need. The government benefits in the return through the collection of taxes from motorist and them in turn use this money in allocating for its functions that includes job creation for its citizens. Through use of PAYDAYS, gasoline fuel is now conserved at high measures; since it is not highly consumed as in the older days. The public is therefore glad to have had chances of enjoying such benefits that come along with the use of pay per mile road tax.
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