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[quote user="V.Payne"] The Federal cross subsidy for the entire interstate highway system for intercity travel is at least $0.08 per automobile vehicle mile at aaa corporate bond rates, not WACC, just bond rates from construction to today. The government borne accident costs are at least $0.02 per vehicle mile. The Class 8 truck subsidy is around $0.30 at aaa corporate interest rates, $0.60 at WACC, as the railroads pay.  Between these two you have the answer to passenger operations and infrastructure expansion in the rest of the country outside the nec. Send me an email and I will send over the working paper that shows so from the FHWA's numbers. [/quote] Why would you reference AAA corporate bond rates? Most highways, airports, etc. in the United States is funded with federal and state money. The state money is usually tax free, i.e. it does not attract federal income taxes as well as state income taxes in the purchaser's resident state if that state is the issuer. The former is currently being borrowed by the U.S. Treasury at a Total Marketable Interest Rate of 2.173 per cent as of the end of April 2012.  State and municipal rates vary across the board according to the issuing state.  In Texas, for example, most state highways are funded by the state DOT, although an increasing number of miles are being funded by private investors.  County roads and local streets are fund by the state's cities and counties, with frequent help from the Texas DOT.   Please give me the reference that you are citing.  I will look it up.
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