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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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Congressionally-created Commission Recommends Mileage Tax Instead of Fuel Tax for Transportation Infrastructure Financing

Green Car Congress

A bi-partisan Congressionally-created commission has recommended a shift from motor fuel taxes to direct fees charged to transportation infrastructure users—i.e., More transparent charges for using infrastructure may also spur drivers to use the system more efficiently, reducing the overall investment need.

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BMW-Sixt car-sharing JV DriveNow launches in London; 30 i3s coming in 2015

Green Car Congress

Every journey is charged to the exact minute, with each minute of driving in London costing 39 pence ($0.61). All costs such as fuel, taxes, insurance and parking charges are already included in London as well. The standard one-off registration fee for London will be £29 ($45).

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National Academies report finds US interstate highways need major overhaul; calls for 20-year blueprint for action

Green Car Congress

The report calls for a 20-year “blueprint for action,” which includes creating an “Interstate Highway System Renewal and Modernization Program,” increasing the federal fuel tax to help pay for it, and allowing tolls and per-mile-charges on more interstate routes.

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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. —Charlie Wilson.

Carbon 231
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Congressional Budget Office estimates US federal policies promoting EVs and other fuel-efficient vehicles will cost $7.5B through 2019; little or no impact on gasoline use and GHG in the short term

Green Car Congress

Increased sales of electric vehicles allow automakers to sell more low-fuel-economy vehicles and still comply with the federal standards that govern the average fuel economy of the vehicles they sell (known as CAFE standards). Cultivate local PEV clusters. Promote PEV interactions with utilities.

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BCG study finds conventional automotive technologies have high CO2 reduction potential at lower cost; stiff competition for electric cars

Green Car Congress

In addition to their relatively high total cost of ownership, EVs face substantial go-to-market challenges—including questions about battery durability and establishment of the required charging infrastructure—that will impact their rate of adoption.

CO2 246