With gasoline consumption on the decline, the government of the Netherlands is experimenting with putting meters in cars so it can charge citizens for how much they drive.

 

Drivers are assessed not only for the miles they rack up, but also for the cost to society they have produced by using an automobile, in terms of pollution, traffic congestion and wear-and-tear to the roads.

 

Proponents point out that a majority of drivers would actually end up paying less than they do with the current system of purchase taxes and registration fees “because more than 50 percent of people’s car use levels are below the break even point.” The price of buying a car would decrease since taxes account for about 25% of the final price in the Netherlands.

 

Selling the program to constituents has not been easy. “Even in environmentally conscious places like the Netherlands, voters and politicians often vehemently oppose the programs, citing privacy concerns about the monitoring of drivers,” wrote Elisabeth Rosenthal in The New York Times.

-Noel Brinkerhoff, David Wallechinsky

 

In Auto Test in Europe, Meter Ticks Off Miles, and Fee to Driver (by Elisabeth Rosenthal, New York Times)

The New Dutch Per-Kilometre Driving Tax (by Bert van Wee, CESifo DICE Report) (pdf)