• Industry: Infrastructure, Government and Healthcare
  • Type: White paper
  • Date: 4/27/2014

Foresight: A Global Infrastructure Perspective 22 

Let’s face it: today’s infrastructure development is primarily shaped by cost considerations. Whether it is the cost of debt, the cost of funding or operational costs, project owners, managers and – increasingly – users are fixated on cost.

Almost since the inception of motorized transport, fuel or “gas” tax has provided an important source of revenue for local and national governments. Indeed, in the US, such levies are the main source of finance for the entire highway infrastructure.

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However, as vehicles become more fuel-efficient, this income is falling each year in real terms, creating a widening funding gap. The emergence of electric and hybrid cars is only accelerating the decline. By charging vehicles according to distance traveled, governments can reverse the decline in fuel tax revenue, and ensure that drivers make an appropriate contribution to the safety and costs of a high-quality road network.