Vehicle Licensing
Introduction
Roads are a rather expensive facility that the state provides its citizens.
The allocation of road use is not equal; some drivers overuse the highway while others travel only sparingly. Payment of a differential vehicle registration fee according to road use, i.e. actual travel time and the time of day the vehicle was driven, will be both reasonable and just.
Roads are built on a standard that allows smooth traffic flow throughout most of the day but they are unable to handle rush hour traffic. A differential vehicle registration fee will help reduce rush hour pressure and prevent the overburdening of the road system. In addition, the proposed system can save the state heavy expenditures and allow it to achieve additional goals.

The Background to Setting a Use-Based Vehicle Registration Fee
Insufficient road system
Roads are built to facilitate vehicle travel at reasonable speeds. In practice, they become blocked at rush hour: for 2-3 hours in the morning and 3-4 hours in the afternoon. At all other times the roads usually allow smooth driving.

Discrimination against some drivers
Over 30 percent of all drivers use their vehicles very little and during off-peak traffic periods, however they pay the same registration fees as those who travel frequently and during rush hour.

Efficient road use
Free goods are used uneconomically. Roads, the cost of which is relatively high, are not exploited efficiently. If high prices are set for road use during peak periods, and low prices are set for off-peak usage, some of the users will opt for the lower cost option.

Slow travel speeds during peak periods
Because of traffic jams, travel during rush hour is relatively slow. Influencing some of the drivers to use the roads during off-peak periods will enable the remaining vehicles to increase their travel speed during the peak periods.

Air pollution
Very slow road travel increases air pollution due to gas fumes. Influencing drivers to opt for off-peak travel will speed up traffic and reduce air pollution.

Fuel consumption
Slow travel increases fuel consumption. Influencing drivers to use the roads during less congested periods will raise travel speed and reduce fuel consumption. This will create savings for the individual and save fuel at the national level.

Transport infrastructure
Convincing drivers to travel at off-peak times will reduce pressure at rush hour, thus reducing the need to expand the road network. This will create savings at the national level.

Road accidents
Congested roads and driving for many hours increases road accidents.


Advantages of the System
Charging according to actual road use
  • Is more just and prevents discrimination against infrequent drivers.
  • Reduces unnecessary road travel.
  • Increases motivation to share vehicles when traveling to work.
A driver at rush hour will pay more than one rarely driving at such times
  • Increased fees during periods of traffic congestion will entice some drivers to prefer less congested traffic times and lead to better use of the road infrastructure.
  • Shifting some of the traffic from peak to off-peak periods will allow freer flow of vehicles during rush hour.
  • Prevention of truck traffic during peak hours will partially reduce vehicular congestion on the roads. This can be achieved with high fees for peak period travel.
  • Traffic reduction during peak periods will save the state some of the cost of expansion of the road system and the infrastructure designed to facilitate the free flow of vehicles.
  • Reduction of congestion during peak hours will speed up traffic during those periods and increase people’s free time during the day.
  • Reduction of congestion during peak hours will allow traffic to flow more easily. As a result:
    • Air pollution caused by automobiles will be reduced.
    • Fuel combustion will decline, creating savings on gasoline and diesel.
Reducing traffic accidents
  • A decline in vehicular congestion on the roads will reduce the number of traffic accidents.
  • Shortening travel time will reduce exposure to accident risk.
  • It is possible to “convince” drivers to take breaks while driving by imposing high taxes on uninterrupted driving without periodic breaks for a rest.
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