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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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MIT study finds fuel economy standards are 6-14 times less cost effective than fuel tax for reducing gasoline use

Green Car Congress

In a study published in the journal Energy Economics , MIT researchers have found that a fuel economy standard is at least six to fourteen times less cost effective than a fuel tax when targeting an identical reduction in cumulative gasoline use (20% by 2050). —Karplus et al.

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Texas CNG, LNG motor fuel sales double FY 2014 estimate

Green Car Congress

As of 31 July, fiscal 2014 tax revenue from sales of compressed natural gas (CNG) and liquefied natural gas (LNG) motor fuel totaled $2,178,199, according to the Texas state Comptroller’s office. State forecasters projected fiscal 2014 natural gas motor fuel tax revenue of $992,000, equal to sales of 6.6

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California BOE considers lowering gasoline excise tax rate for third year in a row

Green Car Congress

California drivers pay two types of state taxes on gas: sales tax, which is a percentage of the price, and a per-gallon excise tax. The fuel tax swap lowered the sales tax rate on gasoline to 2.25% and requires the BOE to set a per-gallon excise tax rate annually before 1 March.

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

Green Car Congress

The report shows that projected global ZEV adoption from 2015 to 2039 (based on the BNEF 2017 forecast) may follow an s-curve, similar to that of smartphone adoption in the US from 2005 to 2015. The growth of ZEVs represents a potential drain on motor vehicle fuel taxes, which could affect state transportation revenue.

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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

per gallon fuel tax by 2050) could result in an additional reduction of 28% in GHG emissions. Strong economy-wide pricing measures (such as a $5.00

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

Green Car Congress

Policies should be implemented to enforce a carbon tax combined with an increasing fuel tax; current CAFE regulations should be extended and new regulations should be implemented; and improvements in existing fuels that would achieve fleet-wide GHG emissions reductions should be explored.

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