Charging Drivers by the Gallon vs. the Mile: An Equity Analysis by Geography and Income in California [Research Brief]
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2022-09-01
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Abstract:California, like many other states and the federal government, is actively exploring use of a road-user charge (RUC) to replace motor vehicle fuel excise taxes. This idea is motivated by the declining share of vehicles that burn gasoline or diesel fuel when they drive. Two equity concerns frequently raised in discussions about RUCs are whether they might disproportionately harm rural households and low-income households. This study used data about California households to explore how replacing the current state gas tax with a hypothetical per-mile road user charge (RUC) would affect household costs by geography and income.
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