In order to apply Burg algorithm in the vehicle speed measurement environment, based on the principle of Doppler effect, the relationship between the transmitted wave frequency and received wave frequency of moving vehicles is derived, then the transmitted wave of 82 Hz and received wave of 81 Hz are estimated with the direct method and the Burg algorithm respectively in the vehicle speed measurement model. The Matlab simulation shows that the estimated values of transmitted wave and received wave are separately close to 82 Hz and 81 Hz by the direct method, but there are a lot of false peaks of noise frequency near the peak frequency. The estimated values of transmitted wave and received wave are accurate by the Burg algorithm, and the main peak is clear and prominent than other noise frequencies. Therefore, the Burg algorithm performs better than the direct method in resolving the frequency difference which is small between the transmitted wave and received wave, and it can be applied to the speed measurement environment.