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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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President Biden calls on Congress, States for fuel tax holiday; increase in refinery capacity

Green Car Congress

To that end, following on Biden’s campaign promise to “end fossil fuel,” policy and investment signals are being sent by various federal agencies and allied state governments to the market about the refining industry: EPA just finalized a light duty vehicle standard that incentivizes at least 17% electric vehicle sales by 2026.

Congress 259
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Washington state legislature approves $16.9B transportation package; targeting all new cars to be electric with MY 2030

Green Car Congress

The revenue package adopted a shift in funding sources after an export fuel tax projected to provide $2 billion in funding was removed on the House floor. The Clean Cars 2030 legislation—which sets a target for all new light-duty vehicles sold in the state to be electric by 2030—also passed as part of the package.

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New UK Report Welcomes Moves to Promote Green Cars but Stresses Importance of Policies to Reduce Car Use

Green Car Congress

The report, authored by experts from Aberdeen University, Imperial College and E4tech Consulting, finds that Government must do much more than promote electric cars if it wants rapid and deep cuts in transport emissions. It also discusses fuel taxes and prices, which affect both travel and vehicle choices.

Fuel Tax 150
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Study finds CO2 emissions trading more effective path to automotive CO2 reduction in Europe than tailpipe standards

Green Car Congress

The European Union (EU) recently adopted CO 2 emissions mandates for new passenger cars, requiring steady reductions to 95 gCO 2 /km in 2021. Reducing CO 2 from cars in the European Union” Transportation doi: 10.1007/s11116-016-9741-3. Paltsev, S., Henry Chen, YH., Karplus, V.

Standards 218
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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. In Norway, for example, 40% of passenger cars sold in 2017 were either battery-electrics or plug-in hybrids.

Carbon 231
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IEA technology and policy reports outline paths to halving fuel used for combustion-engined road transport in less than 40 years

Green Car Congress

The policy package includes a new fuel economy readiness index, which measures the extent to which countries have implemented steps that will fully exploit the potential of existing fuel economy technologies and maximise their use in vehicles.