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Currently, federal, state, local, and private system operators are struggling to finance transportation infrastructure and operations. Limited funding at both the federal and state levels due to an inability to find alternative sources of revenue has led to poor maintenance of transportation infrastructure which in turn, leads to potentially dangerous conditions on many older bridges and road facilities. In considering new financing approaches, a number of fiscal and administrative challenges will need to be addressed.

Investigating the Network System Effects of Mileage Fee

Fuel taxes have been the main source of transportation funding in the US for the last nearly six decades. Recently, there have been increasing concerns regarding this funding mechanism because the revenue from fuel taxes cannot keep up with the increasing needs for transportation infrastructure repair and rebuild. To address the critical needs in transportation finance, the concept of mileage fee (MF) has received much attention lately as an alternative way to generate transportation revenue.

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