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Is A Tax On Electricity (kWh) Consumed The Best Way to Supplement the Fuel Tax for Electric Vehicles?

EV Adoption

As sales of electric vehicles begin to reach significant numbers across the US, states are exploring approaches to replace lost tax revenue since EV drivers don’t pay fuel taxes as drivers of gas-powered cars do at gas stations. Unfortunately there is currently no simple and agreed upon best replacement for the fuel tax.

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UC Davis report proposes mileage fee for EVs, maintaining fuel tax for ICEs to support road repairs

Green Car Congress

A research report submitted to the California Legislature this week by the University of California, Davis’ Institute of Transportation Studies proposes switching EVs to a mileage-based road-funding fee (road user charge, RUC) while continuing to have gasoline-powered cars pay gasoline taxes.

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Next 10 report finds California will meet or exceed original target of 1.5M ZEVs by 2025

Green Car Congress

However, California is lagging behind when it comes to ensuring its charging infrastructure keeps up with the growth of its electric vehicle fleet, the report finds. California has 16,549 public and nonresidential private-sector charging outlets—the most in the nation by far. Automakers are reducing charging times.

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UC report to CalEPA outlines policy options to decarbonize California transportation by 2045

Green Car Congress

This very rapid transition would need to be catalyzed by a combination of a more stringent ZEV mandate, buyer incentives, and deployment of public charging and hydrogen infrastructure. However, a key tracking report in 2018 found that VMT is increasing, not decreasing. Transportation pricing: Gasoline taxes.

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Study finds behavior-influencing policies remain critical for mass market success of low-carbon vehicles

Green Car Congress

Without any such policies, the market for alternative-fuel vehicles will remain very niche, with a market share hovering around 1% for the foreseeable future—in other words, hardly greater than today. 2018) “Interaction of consumer preferences and climate policies in the global transition to low-carbon vehicles.”

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We Need More Than Just Electric Vehicles

Cars That Think

Scientists and engineers have extended the range of EVs by cramming ever more energy into their batteries, and vehicle charging networks have expanded in many countries. You also must consider the electricity that charges the vehicle. And that much more vehicle charging would then put great pressure on our electricity grids.