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The Growing Separation Between Markets and Government: Factors Affecting and Solutions for Highway Infrastructure Financing

The Growing Separation Between Markets and Government: Factors Affecting and Solutions for Highway Infrastructure Financing
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Author(s): Paul Greaves (Debtwire, USA)
Copyright: 2018
Pages: 10
Source title: Positioning Markets and Governments in Public Management
Source Author(s)/Editor(s): Helisse Levine (Long Island University, USA)and Karina Moreno (Long Island University, USA)
DOI: 10.4018/978-1-5225-4177-6.ch012

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Abstract

The nation's surface transportation infrastructure represents a key component to economic growth in the United States for the 21st century. The establishment of the Interstate Highway System in 1956 represents one of the country's greatest public works achievements. The funding mechanism has been the Highway Trust Fund that collects fuel taxes to finance transportation projects. The rationale for this structure was to create a self-financed program. Over the last couple of decades, fuel taxes have not kept pace with highway needs. This chapter will examine the widening funding gap and options for making the program a true pay-as-you-go system once again.

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