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A research report submitted to the California Legislature this week by the University of California, Davis’ Institute of Transportation Studies proposes switching EVs to a mileage-based road-funding fee (road user charge, RUC) while continuing to have gasoline-powered cars pay gasolinetaxes.
Tesla lobbied the United Kingdom government to raise taxes on gasoline and diesel cars in order to fund higher subsidies for electric cars, The Guardian reported Tuesday.
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.
The proposal currently excludes vehicles such as the Chevrolet Volt, which can run part of the time on gasoline. Proponents of the surtax argue the fee is needed to offset losses in state gas tax revenues since EV owners don’t need to buy gas. Electric vehicles are a promising new and evolving advanced technology.
Tax credits and gasoline prices necessary for various electric vehicles to be cost-competitive with conventional vehicles at 2011 vehicle prices. The electric vehicles that are the focus of this study fall into two broad classes: plug-in hybrid electric vehicles and battery-electric vehicles. Source: CBO.
In New Zealand, diesel and electric-powered vehicles pay for their road use through road user charges. 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.).
As a result, BCG concludes, the electric car faces stiff competition from ICEs (internal combustion engines) and, based solely on total cost of ownership (TCO) economics, will not be the preferred option for most consumers. BCG expects pack costs for OEMs will fall to ~$360-440 per kWh by 2020. Source: BCG. Click to enlarge. Source: BCG.
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.
This new staff discussion draft focuses energy tax policy on stimulating domestic, clean production of electricity and transportation fuels, which account for 68% of energy consumed in the US. It also would repeal a number of current tax incentives, including those for plug-in electric vehicles and fuel cell vehicles.
Policies to entice consumers away from fossil-fuel powered vehicles and normalize low carbon, alternative-fuel alternatives, such as electric vehicles, are vital if the world is to significantly reduce transport sector carbon pure-emissions, according to a new study. Share of EDVs in 2050. McCollum et al. Click to enlarge.
This TCO issue is critical because electric vehicles (EVs) are likely to be superior on a TCO basis in less than 10 years, but buyers base their decision more on the EV purchase price, which is not optimal for the economy nor the environment. Transportation pricing: Gasolinetaxes. Transit-oriented development/densification.
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.
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.
Grid and Broadband Access – In most countries, the electric grid serves the majority of locales, even in remote locations. A new charging station may require additional electric service lines and will definitely need installation of industrial-strength wiring, breakers and meters.
The electric car market is experiencing massive growth, exceeding 10 million in sales in 2022. As a result, regulations and guidelines related to electric vehicles are changing frequently, and consumers and charging station hosts must be aware of new developments.
The model also includes representation of fleet turnover, and opportunities for fuel use and emissions abatement, including representation of electric vehicles. The European Union (EU) recently adopted CO 2 emissions mandates for new passenger cars, requiring steady reductions to 95 gCO 2 /km in 2021.
The Virginia General Assembly is moving forward with legislation ( HB2313 ), that, among its other elements, would abolish the state’s gasoline and diesel fueltaxes and replace them with a sales tax. Currently, both gasoline and diesel carry a $0.175/gallon fueltax.
The total cost of purchasing and driving one—the cost of ownership—has fallen nearly to parity with a typical gasoline-fueled car. With all this, consumers and policymakers alike are hopeful that society will soon greatly reduce its carbon emissions by replacing today’s cars with electric vehicles. EVs have finally come of age.
Average on-road fuel consumptions (tank to wheels) of the different propulsion systems in an average light-duty vehicle: 2010, 2030, and 2050. Values normalized to standard naturally-aspirated gasoline engine vehicle. Includes vehicle weight reduction: at constant acceleration capability.
That fueled a leasing boom for EVs over the past couple years, allowing automakers to offer attractive lease prices that in many instances undercut those of hybrids or other gasoline models, and allowing shoppers to bypass stricter rules about income and vehicle origins that applied to purchases.
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