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Currently, there has been extensive discussion on various pricing alternatives to the present tax per fuel gallon that is in effect. There has been great interest to identify additional resources that will increase the federal and state revenues allocated to the maintenance of the existing surface transportation network. The widely suggested policy measure of the vehiclemiles-traveled fee (VMT fee) is an alternative pricing option that has drawn great attention by researchers and policymakers, particularly regarding its equity performance among various social groups. In this context, the objective of this thesis is two-fold. The primary objective is to identify which social sub-groups are mostly affected under the current fuel tax option and the alternative VMT fee option. To achieve this, the author collated information on socioeconomic-, geographic-, and vehicle-specific attributes at the household (HH) level from the original Household and Vehicle Files of the 2009 National Household Travel Survey. The identification of the social sub-groups is realized via a three-stage least squares (3SLS) model development at the national level of analysis, where the dependent variables in the model specification for each pricing option are the average vehicle fuel efficiency and the vehicle-miles traveled for the fuel tax and the VMT fee option respectively. The second research objective of this thesis is to identify if the model specification at the national level may be applicable at a more localized level of analysis, for example for Iowa. The analysis of variance (ANOVA) and the asymptotic t-test of the individual coefficients are applied to test for differences in the two levels of analysis. The results of the first part of the analysis show that particular social sub-groups, such as HHs located in rural areas, or HHs that are located in states with lower fuel taxation,

Equity performance evaluation of two different pricing options: fuel tax per gallon and VMT fee