article thumbnail

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).

article thumbnail

Could an "electric fuel" tax for EV use help states solve the gas-tax dilemma?

Green Car Reports

The gas tax remains one of the main funding sources for road infrastructure, which has led to cries that electric-car drivers aren't paying their fare share of road maintenance costs. Consider electricity a fuel. A new bill circulating through the Minnesota legislature calls for an "electric fuel" tax for EVs.

Fuel Tax 209
article thumbnail

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

Green Car Congress

Lastly, we examine alternative funding mechanisms include a fuel tax for hydrogen and electricity, as well as a road user charge (RUC). One challenge is the relatively high administrative cost. This cost burden could be alleviated by imposing the RUC only on ZEVs, with the gasoline tax staying in place with other vehicles.

Davis 268
article thumbnail

California reduces tax on dimethyl ether (DME) fuel to be consistent with other alternative fuels; enabling retail sales

Green Car Congress

The California state legislature passed and the Governor signed into law a bill ( AB-2663 ) that lowers the Use Fuel Tax rate of dimethyl ether (DME) from $0.18 per gallon of DME-propane fuel blend used on or after 1 July 2021 (the same tax rate as propane, $0.06 per gallon of DME used and $0.06 per gallon).

Tax 376
article thumbnail

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

Green Car Congress

Monthly data from the EIA shows that crude oil is 60% of the price of gasoline, 17% is refining costs, 12% is federal and state taxes, and 11% is distribution and marketing. Refined product prices are set by the marginal supply costs of bringing the incremental barrels of products to market.

Congress 259
article thumbnail

Massachusetts Governor Proposes $0.19 Increase in State Fuel Tax to Support Transportation Projects

Green Car Congress

As part of a comprehensive reform plan to simplify the Commonwealth of Massachusetts’ transportation system, Governor Deval Patrick is proposing a fuel tax increase of $0.19 The increased fuel tax is intended to be in lieu of an increase in tolls. per gallon—a 81% increase of the current $0.235 per gallon.

Fuel Tax 150
article thumbnail

Congressionally-created Commission Recommends Mileage Tax Instead of Fuel Tax for Transportation Infrastructure Financing

Green Car Congress

A bi-partisan Congressionally-created commission has recommended a shift from motor fuel taxes to direct fees charged to transportation infrastructure users—i.e., An ever-expanding backlog of investment needs is the price of our failure to maintain funding levels—and the cost of these investments grows as we delay. of GDP today.