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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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National Research Council Report Explores Improving Fuel Economy of Medium- and Heavy-Duty Vehicles; Recommends Immediately Beginning Developing a Regulatory Approach

Green Car Congress

The National Research Council has released a prepublication edition of a new congressionally mandated report that evaluates various technologies and methods that could improve the fuel economy of medium- and heavy-duty vehicles (MHDVs), such as tractor-trailers, transit buses, and work trucks.

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Belfer Center report calls for policymakers to begin taking steps to change policies for funding US transportation infrastructure

Green Car Congress

users pay for the construction and maintenance of roads via a federal fuel tax. Revenues from the tax go into the federal Highway Trust Fund, which is independent of the General Fund; every five years or so Congress passes an authorization bill to allocate these revenues. States use similar mechanisms. —Huang et al.

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Study Finds That Implementation of a Portfolio of Transportation Strategies Will Be Required for Significant Reductions in GHG from Transportation Sector; Pricing Strategies Have the Largest Potential

Green Car Congress

Strong economy-wide pricing measures (such as a $5.00 per gallon fuel tax by 2050) could result in an additional reduction of 28% in GHG emissions. The Moving Cooler baseline extrapolated these projections further to 2050, resulting in a potential doubling or greater of fleet fuel efficiency. Land use and smart growth.