How the Prius is Destroying American Highways

February 5, 2012 in Daily Bulletin

The Atlantic recently took a look at an impending problem for America’s road network. They report:

  • Since Eisenhower the federal government has had a Highway Trust Fund that is responsible for maintaining America’s road network. It raises fund through fuel taxes.
  • However the fuel tax hasn’t risen since 1993 and so inflation has eaten away at its real value.
  • Moreover Americans are driving less due to the economic recession further denting revenues for the fund.
  • Finally the push towards more fuel efficient cars will also hurt Highway Trust Fund revenues since people will be consuming less fuel.
  • Proposals for restoring the Highway Trust Fund to solvency include charging drivers based on the number of miles they drive to more accurately reflect the wear and tear they put on roads.

To read about other potential solutions as well as some real numbers about the fund and projections for when the fund will exhaust itself, click here.

Source: The Atlantic