Modernizing the U.S. Interstate Highway System via Toll Finance

摘要

This paper addresses two related problems: how to pay for reconstruction andmodernization of the aging Interstate highway system and how to deal with politicalopposition to increased use of direct charging for highway use. It proposes introducingtolling only on individual corridors as they are reconstructed and (if needed) widened, aswell as using tolls to replace fuel taxes to avoid “double taxation.” First, the cost ofreconstructing all existing Interstate lane-miles is estimated, using FHWA HERS unitcost data. The cost of adding lanes, where indicated by projected growth in light andheavy vehicle travel, is estimated using HERS unit costs. The revenue that could begenerated by an inflation-adjusted per-mile tolling system (to be implemented via allelectronictolling) on this rebuilt and modernized system is estimated. Finally, the netpresent value of toll revenues is compared with the net present value of modernizationcost as an initial estimate of financial feasibility. The analysis is carried out for all 50states and the District of Columbia.