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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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Congressional Budget Office estimates US federal policies promoting EVs and other fuel-efficient vehicles will cost $7.5B through 2019; little or no impact on gasoline use and GHG in the short term

Green Car Congress

Tax credits and gasoline prices necessary for various electric vehicles to be cost-competitive with conventional vehicles at 2011 vehicle prices. That finding takes into account both the higher purchase price of an electric vehicle and the lower fuel costs over the vehicle’s life. Source: CBO. Click to enlarge.

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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

Significant public messaging from the government on EVs has yet to lead to either promised breakthroughs in battery technology or significant sales outside of public fleets. Combined, EVs and hybrids could reach 15% of aggregate new-car sales in the four major markets—Europe, North America, China, and Japan—in 2020.

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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 Pennsylvania , there is an existing alternative fuel tax in effect.

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California ARB mods to ZEV regulations for IVMs would result in ~1.9% drop in total ZEV/TZEV units 2018-2025; no impact on air quality requirements

Green Car Congress

In other words, the automakers still have to meet the fleet-based emissions requirements through their sales mix. Europe has gasoline taxes over $4 per gallon and still finds the need to adopt aggressive performance standards for cars to reduce GHGs and oil use. LVMs, IVMs, SVMs.

2018 257
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Automotive Market Research Perspectives on Selling Green in a Try-to-Survive Market

Green Car Congress

Miller of Synovate believes that in the US “ 20% of the people are willing to pay up to 10% of the vehicle’s purchase price more (i.e. Edwards and Miller both emphasized the importance of a buyer’s emotion in purchasing a vehicle. Gasoline may cost between $3-$5 while you own this vehicle. United States.

Market 170
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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. Zero emission vehicles: In the low carbon scenario, vehicle sales are 100% ZEV by 2040. Transportation pricing: Gasoline taxes. —“Driving California’s Transportation Emissions to Zero”.