Institutional and Technology Options for VMT Data and Fee Collection Centers

Anthony Rufolo, Portland State University

Summary:

The objective of this report is an analysis of public vs. private data and fee collection centers for 
vehicle miles traveled (VMT) fees. This includes the identification and evaluation of issues that
will affect the relative desirability of the two forms of ownership and operation. These issues 
include cost, enforcement, debt collection, flexibility, and public perception.
There are a variety of issues that must be addressed in evaluating public or private provision of a 
government service. In general, competitive private provision of a service is likely to be less 
costly and more innovative than direct government provision; but direct provision provides more 
continuity and avoids some potential problems with contract incentives and changes in service 
providers. It is also important to separate the source of differences in cost between direct
government provision and contracted private provision of a service. 
An additional consideration is whether the government is choosing a single provider or is setting
up a system that allows for multiple possible private providers, competing with each other for 
customers. For example, in trash collection some governments provide direct service, some 
contract with a single provider for the service, and some allow multiple private providers to 
compete to provide the service. The choice between the latter two forms of private provision is 
likely to be affected by issues such as economies of scale, privacy concerns, and enforcement.

Project Details

Project Type:
Research
Project Status:
Completed
End Date:
December 31,2002
UTC Grant Cycle:
non-UTC research