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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 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. These policy strategies are grouped into the following categories: Built environment and land use changes: Prioritize maintenance and avoid or cease new road building or road expansion. Transportation pricing: Gasoline taxes.

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We Need More Than Just Electric Vehicles

Cars That Think

The total cost of purchasing and driving one—the cost of ownership—has fallen nearly to parity with a typical gasoline-fueled car. Most automotive manufacturers say they plan to use renewable energy in the future, but for now, most battery production relies on electric grids largely powered by fossil fuels.