Review of Mileage-Based User Fees for Sustainable Transportation Funding: Challenges,Opportunities,and Research Gaps

Abstract

Decarbonization trends in the transportation sector through vehicle electrification, combined with the declining efficacy of the fuel tax, have necessitated sustainable transportation Funding solutions. One such solution is the mileage-based user fee (MBUF) or the vehicle miles traveled fee, which charges drivers based on distance traveled. Over the past decade, pilot programs and research reports have evaluated MBUF’s feasibility and benefits from diverse viewpoints. This paper provides a comprehensive review of the existing literature on MBUF, focusing on modeling and methodological aspects, incorporating empirical findings from technical reports and pilot programs, and comparing MBUF with other road pricing methods, particularly administrative costs, technological requirements, and interoperability across state boundaries and fee structures. Key areas of investigation include system-level impacts (such as revenue potential and rate setting) and individual-level impacts (such as equity and privacy). Equity considerations are further analyzed; that is, social (income- and demographic-based), geographic (rural versus urban), and modal equity. The review highlights the limited research on the long-term equity impacts of MBUF and the critical need to understand behavioral impacts under the evolving policy landscape. The challenges, opportunities, and research gaps associated with MBUF are discussed, emphasizing the need for data-driven behavioral models and a systematic approach to transportation Funding.