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

Green Car Congress

Although battery costs will fall sharply (approximately 64% from 2009 levels) to $400 per usable kWh at the pack level, this still represents a cost of $9,600 per vehicle to the consumer for the typical 20 kWh battery necessary for a pure battery EV. —“Powering Autos to 2020” (draft). Source: BCG. The consumer.

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kWh Billing and New EV Charging Tax Policies: What You Need to Know

Blink Charging

The electric car market is experiencing massive growth, exceeding 10 million in sales in 2022. As both EV adoption increases and internal combustion engine vehicles have become more fuel efficient, states are seeking to offset lost revenue from the gas tax. In Iowa , the kWh tax has already been in effect since July 1, 2023.

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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

The plan as outlined also calls for further work on advanced biofuels, advanced batteries and fuel cell technologies in every transportation mode. Climate Change Emissions Fuel Efficiency Fuels Heavy-duty Policy' Expanding the Better Buildings Challenge.

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

Green Car Congress

This scenario includes GHG emissions, vehicle sales, fuel consumption, carbon intensity, and changes in VMT. Fuels: liquid petroleum fuels that dominate transportation today and renewable and alternative fuels that can act as substitutes. Transportation pricing: Gasoline taxes. Key policy strategies.

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MIT Energy Initiative report on transforming the US transportation system by 2050 to address climate challenges

Green Car Congress

The report addresses topics related to the evolution of vehicle technology and its deployment, the development of alternative fuels and energy sources, the impacts of driver behavior, and the implications of all of these factors on future GHG emissions in the United States, Europe, China, and Japan.

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