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users pay for the construction and maintenance of roads via a federal fueltax. 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. —Huang et al.
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 fueltaxes as drivers of gas-powered cars do at gas stations. Unfortunately there is currently no simple and agreed upon best replacement for the fueltax.
With Europe’s gas phase-out plans now within view, the countries there could be set to lose significant funding from fueltaxes in the coming years. billion ($31 billion) between last year and this year—or more than alcohol and tobacco taxes combined. As such, taxing driving specifically may be a better alternative.
Also critical is the cost per square foot or meter of useful land to buy or lease. Charging station operators increasingly complement grid connection with solar panels and battery storage, costing additional funds to buy or lease. An additional set of costs come from on-site renewable generation and storage.
For example, fueltaxes (which are accounted for when you pay at the pump) are responsible for funding anywhere from a quarter to a third of all roadway maintenance — which would evaporate as more people started driving electric vehicles.
The role of emotion in buying cars. We’re not sure how much maintenance cost you are going to incur and quite frankly you many need to replace the battery pack after 3-4 years and it may cost between $3,000-$5,000. Would you buy this vehicle? Gasoline may cost between $3-$5 while you own this vehicle.
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