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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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UC Davis report proposes mileage fee for EVs, maintaining fuel tax for ICEs to support road repairs

Green Car Congress

That approach is not a sustainable or effective solution, according to report author Alan Jenn, a UC Davis research scientist with the Plug-In Hybrid & Electric Vehicle Research Center. Lastly, we examine alternative funding mechanisms include a fuel tax for hydrogen and electricity, as well as a road user charge (RUC).

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Mn/DOT assessing potential for mileage-based user fee to replace fuel tax; Battelle conducting technology assessment

Green Car Congress

We are researching alternative financing methods today that could be used 10 or 20 years from now when the number of fuel efficient and hybrid cars increase and no longer produce enough revenue from a gas tax to build and repair roads. —Cory Johnson, project manager. —Ben Pierce, Battelle’s Project Manager.

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

Green Car Congress

Based on 12,330 miles driven per year, the pure battery electric Nissan Leaf has lower five-year and 10-year life cycle costs than the internal combustion Hyundai Elantra and the plug-in hybrid Chevrolet Volt, even without the federal government incentive. The average Californian drives 14,435 miles every year.

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Belfer Center Study Concludes Reducing Car and Truck GHG Emissions Will Require Substantially Higher Fuel Prices; Income Tax Credits for Advanced Alt Fuel Vehicles Are Essentially Ineffective at Reducing Sector Emissions

Green Car Congress

The study— Analysis of Policies to Reduce Oil Consumption and Greenhouse-Gas Emissions from the US Transportation Sector —finds that reducing CO 2 emissions from the transportation sector 14% below 2005 levels by 2020 may require fuel prices above $8/gallon by 2020. —Morrow et al.

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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 addition, although many experts say that the solution to our energy and climate problems is sending the correct price signals to industry and consumers, the transport sector’s behavior is highly inelastic in that it does not change significantly in response to changes in fuel prices, at least in the range that is politically acceptable.

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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 miles-per-gallon measure used to regulate the fuel economy of passenger cars is not appropriate for medium- and heavy-duty vehicles, which are designed above all to carry loads efficiently, the report notes. This is called load-specific fuel consumption (LSFC). The report urges Congress to consider this approach.