Tag Archives: fuel efficiency

Are speed limits about safety, traffic control, fuel efficiency, or local norms?

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The National Highway Traffic Safety Administration is running radio ads that tell people to follow the speed limit in order to increase safety on roads. From their website:

Photo by Tom Fournier on Pexels.com

For more than two decades, speeding has been involved in approximately one-third of all motor vehicle fatalities. In 2022, speeding was a contributing factor in 29% of all traffic fatalities.

Speed also affects your safety even when you are driving at the speed limit but too fast for road conditions, such as during bad weather, when a road is under repair, or in an area at night that isn’t well lit.

Speeding endangers not only the life of the speeder, but all of the people on the road around them, including law enforcement officers. It is a problem we all need to help solve.

Traveling at higher speeds mean it is harder to control a vehicle and those vehicles that do hit other things sustain more damage.

But speed limits can also serve other goals. Perhaps they are also about traffic and the number of vehicles on the roads. Having fewer vehicles means it is possible to go faster, having more vehicles means going at a slower speed makes more sense. Hence, more variable speed limits on highways as speed limits adjust to traffic and conditions.

Speed limits can also be about fuel efficiency. With limited gas supplies in the 1970s, officials reduced speed limits in the United States in 1974:

The National Maximum Speed Limit (NMSL) was a provision of the federal government of the United States 1974 Emergency Highway Energy Conservation Act that effectively prohibited speed limits higher than 55 miles per hour (89 km/h). The limit was increased to 65 miles per hour (105 km/h) in 1987…

The law was widely disregarded by motorists nationwide, and some states opposed the law,[3][4] but many jurisdictions discovered it to be a major source of revenue. Actions ranged from proposing deals for an exemption to de-emphasizing speed limit enforcement. The NMSL was modified in 1987 and 1988 to allow up to 65 mph (105 km/h) limits on certain limited-access rural roads. Congress repealed the NMSL in 1995, fully returning speed limit-setting authority to the individual states.

Driving too fast on the highway lowers fuel efficiency – see this table from the Department of Energy.

And speed limits can vary by place and local norms. For example, see this discussion about changing highway speed limits in Montana:

Montana, once known for its wild, limitless roads, did not want to be left behind as other Western states increase their speed limits. Idaho, Nevada, South Dakota, Utah and others have set 80 mile per hour speed limits on at least some sections of road.

With speed limits now set by states and lower forms of local government, there can be a lot of variation for a variety of reasons.

Vehicles miles-traveled tax in “five to ten years” as states run pilot studies

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With more fuel efficient vehicles and higher federal government standards, several states are starting pilot programs to test a vehicles miles-traveled tax:

Minnesota and Oregon already are testing technology to keep track of mileage. Other states, including Washington and Nevada, are preparing similar projects.

The efforts are being prompted by the fact that gasoline taxes no longer provide enough money to pay for roads and bridges — especially when Congress and many state legislatures are reluctant to increase taxes imposed on each gallon. The federal tax of 18.4 cents a gallon hasn’t been raised in nearly two decades. More than half the states have not raised their gas tax this millennium. Fuel-efficiency also is behind the efforts. Electric-powered vehicles are growing in numbers. In 2009, President Obama set the nation’s most aggressive fuel-efficiency standards for new vehicles, ordering a 40% increase by 2016.

“As the (national vehicle) fleet becomes more fuel efficient … we’re going to lose a lot of revenue from the gas tax. If it’s not replaced, we’re going to see our transportation infrastructure deteriorate,” says Joshua Schank, president of the non-partisan Eno Center for Transportation in Washington, D.C. He expects to see a state vehicle miles-traveled (VMT) tax within the next five to 10 years…

The greatest obstacle to a miles-traveled tax has been privacy concerns. When Oregon ran a pilot program six years ago, motorists’ major objection was to in-vehicle boxes used to track miles driven, says James Whitty of the Oregon Department of Transportation. “They didn’t like the government boxes. They didn’t like the GPS mandate,” he says…

In Minnesota, 500 volunteers in largely urban Hennepin and mostly rural Wright counties have been testing a system using software installed on smartphones, says Chris Krueger, spokeswoman for the Minnesota Department of Transportation. “We can collect trip info and be able to simulate what it would be like to have a mileage-based user fee,” she says.

This blog has covered this issue before here, here, and here. This is a classic case of unintended consequences: trying to improve fuel efficiency may be a good goal but it has revenue ramifications.

Several thoughts about these pilot studies:

1. If citizens say they don’t like the programs, will that matter in the long run? States still need revenue whether drivers like the method of getting that revenue or not.

2. I haven’t seen this addressed: would drivers continue to pay a gasoline tax as well as a miles-driven tax? We are a long way from even a sizeable majority of people owning electric cars. How would you balance the two taxes to insure certain levels of revenue?

3. This is somewhat tongue in cheek but would you prefer to have the government tracking you by in-vehicle GPS or your smartphone? Or in Illinois and other similar states, by your toll transponder? Remember, you may not be able to answer “none of the above.”

4. Is a vehicles miles-traveled tax something that could get a politician voted out of office? Americans do like their freedom to drive…without considering how much it costs all-around.

h/t Instapundit

Federal budget issue: increased fuel effiency, reduced revenues from the gasoline tax

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Amidst discussions about infrastructure and the price of gasoline, Obama’s administration has called for an increase in transportation spending. But where exactly the money will come from to fund this increase is unclear:

[Transportation Secretary Ray LaHood] said Obama is not in favor of raising the gas tax in a “lousy economy.”

The new tax would be necessary, in part, because the gasoline tax used to fund the highway trust fund is collecting less revenue than projected due to increasing fuel efficiency.

The exchange between Sessions and LaHood degenerated into a shouting match, with the Transportation secretary emphasizing that infrastructure can be improved and jobs created while paying down the debt.

This is one negative consequence of increased fuel efficiency: less gasoline will be purchased so without a gas tax increase, revenue from this source falls. This might call for some new ways to derive tax revenue from driving. How about more tolls? Or taxing drivers per mile driven?