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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

Lastly, we examine alternative funding mechanisms include a fuel tax for hydrogen and electricity, as well as a road user charge (RUC). Jenn, Alan (2018) “ Assessing Alternatives to California’s Electric Vehicle Registration Fee.” We find that a ZEV exclusive RUC is the most promising alternative to the ZEV registration fee.

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California ARB mods to ZEV regulations for IVMs would result in ~1.9% drop in total ZEV/TZEV units 2018-2025; no impact on air quality requirements

Green Car Congress

In addition, although many experts say that the solution to our energy and climate problems is sending the correct price signals to industry and consumers, the transport sector’s behavior is highly inelastic in that it does not change significantly in response to changes in fuel prices, at least in the range that is politically acceptable.

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Obama climate plan calls for new fuel economy standards for heavy-duty vehicles post-2018; cleaner fuels and investment in advanced fossil energy

Green Car Congress

Among the transportation-related elements of US President Barack Obama’s new climate action plan, which he is outlining today in a speech at Georgetown University, is the development of new fuel economy standards for heavy-duty vehicles post-2018. Climate Change Emissions Fuel Efficiency Fuels Heavy-duty Policy'

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

Green Car Congress

Based on 12,330 miles driven per year, the pure battery electric Nissan Leaf has lower five-year and 10-year life cycle costs than the internal combustion Hyundai Elantra and the plug-in hybrid Chevrolet Volt, even without the federal government incentive. Price: The most expensive component of a ZEV is the battery.

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

Green Car Congress

The researchers found that focusing on the behavioral aspects of consumers in vehicle purchase decisions is key to encouraging the rapid uptake of plug-in hybrid vehicles, battery-electric vehicles, and hydrogen fuel cell vehicles. Share of EDVs in 2050. —Charlie Wilson. Nature Energy doi: 10.1038/s41560-018-0195-z.

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

Green Car Congress

However, a key tracking report in 2018 found that VMT is increasing, not decreasing. Transportation pricing: Gasoline taxes. Shift to VMT-based road fees as the number of ZEVs grows and fuel tax revenues decline. Agencies submitted plans that combined were intended to reduce emissions by 18% statewide.