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In a study published in the journal Energy Economics , MIT researchers have found that a fueleconomy standard is at least six to fourteen times less cost effective than a fueltax when targeting an identical reduction in cumulative gasoline use (20% by 2050). —Karplus et al.
According to the Federal Highway Administration, the average fueleconomy for all light vehicles on the road today is 22.3 The Federal tax on gasoline is 18.4 cents per gallon, and each state has a gasoline tax, ranging from 8.95 Based on a vehicle with an average fueleconomy of 22.3 cents in Alaska to 58.7
Sivak found that while the vehicle fueleconomy of the entire light-duty fleet improved by 40% (from 13 mpg US to 21.6 l/100km), because of the decrease in vehicle load, the occupant fueleconomy only improved by 17% (from 24.8 Combining these two effects yields a reduction of about 14% in the amount of fuel used.
President Biden called on Congress to suspend the federal gas tax for the next 90 days, through the busy summer driving season—18 cents per gallon for gasoline and 24 cents per gallon for diesel. He also called on states to suspend their state gas taxes as well or to find other ways to deliver some relief.
Meanwhile, significant gains in vehicle fueleconomy over the coming decades are possible and very much needed globally in order to address pressing issues of climate change, energy security and sustainable mobility. carbon fuel vehicles will be needed to continue to decarbonize LDVs and reduce oil use out to 2050 and beyond.
The IEA and ITF have developed a range of projections of possible “business-as-usual” scenarios around this, indicating the potential for a doubling (or more) of vehicle kilometers travelled (VKT) combined with modest improvements in vehicle fueleconomy. Vehicle taxes and incentives. Component standards, taxes and incentives.
The economy-wide CO 2 prices applied increase the cost of driving only marginally with respect to the business-as-usual case. Direct transportation (fuel) taxes generate the greatest reductions in CO 2 emission from transportation, achieving CO 2 emissions at 86% of 2005 levels by about 2025. —Morrow et al.
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. States use similar mechanisms. —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.
IEA fueleconomy readiness index status, 2010. New propulsion systems requiring new fuels, such as plug-in electric vehicle systems and fuel cell systems, are beyond the scope of this technology roadmap and are treated in separate roadmaps. Average fueleconomy and new vehicles registrations, 2005 and 2008.
Among the transportation-related elements of US President Barack Obama’s new climate action plan, which he is outlining today in a speech at Georgetown University, is the development of new fueleconomy standards for heavy-duty vehicles post-2018. Climate Change Emissions Fuel Efficiency Fuels Heavy-duty Policy'
The National Research Council has released a prepublication edition of a new congressionally mandated report that evaluates various technologies and methods that could improve the fueleconomy of medium- and heavy-duty vehicles (MHDVs), such as tractor-trailers, transit buses, and work trucks.
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. billion through 2019.
There may be one negative knock-on effect of improving the fueleconomy standards of our vehicles: fueltax revenues could slump massively. According to a report by the Congressional Budget Office (logo, pictured), fueleconomy standards proposed for 2017-2025 would cut revenues from petrol tax by 21 per cent in 2040.
He points out that because of high fueltaxes and the resulting high cost of gasoline in Europe, the existing fleet of passenger cars there is already more efficient than the US fleet, so implementing stringent fuel efficiency standards would be more costly for Europe.
Such standards are effective in overcoming barriers to the introduction of more efficient vehicles and fuels, while creating regulatory certainty for product developers and manufacturers. This should include carbon and energy taxing, for example, as proposed in the amendment of the Energy Tax Directive.
Since some 36% of diesel is used off-road, such as on farms, by manufacturing, industrial and commercial ventures, and boats, a fueltax for road use would impose an unfair burden onto these sectors, the government says.). In New Zealand, diesel and electric-powered vehicles pay for their road use through road user charges.
Strong economy-wide pricing measures (such as a $5.00 per gallon fueltax by 2050) could result in an additional reduction of 28% in GHG emissions. The Moving Cooler baseline extrapolated these projections further to 2050, resulting in a potential doubling or greater of fleet fuel efficiency. Moving Cooler. percent to 3.6
States rely on gas taxes to fund road improvements and repairs. Step 1: Identify Revenue Replacement Baseline Since all states have a gas tax in place, let’s not recreate the wheel. We then multiply the number of gallons of gas needed each year by the gas tax rate per gallon. a year in gas taxes. a year in gas taxes.
The recommendations include: Improving the fuel consumption of mainstream vehicles is the primary nearer-term opportunity for reducing fuel use and GHG emissions. Market-based incentives should be implemented to support the US Corporate Average FuelEconomy (CAFE) LDV requirements.
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