An Analysis of Potential Impacts of the Proposed Vehicle Miles Traveled Tax Bill in California

Authors

  • Jehaan Driver Author

Abstract

Should a vehicle miles traveled (VMT) tax be implemented in California? I perform a literature review covering all papers that study VMT tax systems in other contexts and discuss how effective these are at reducing miles traveled and air pollution. I use California public infrastructure and vehicle sales data to show what a VMT in California would cost denizens in the state. I conclude with a discussion on the global applicability of this tax structure based on my findings. A VMT tax can be effective at solving a revenue deficit provided incomes are high enough, there are trusted institutions, and other transit options for consumers to substitute. 

Keywords: Climate Change, Emissions, Greenhouse Gases, Externalities, Pigouvian tax

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Published

2025-04-09

Data Availability Statement

Everything used (and referenced) is publicly available online

Issue

Section

Research Articles