Increased use of electric vehicles by U.S. drivers would continue to erode the purchasing power of the federal gas tax. This study from Carnegie Mellon University, “How will we fund our roads? A case of decreasing revenue from electric vehicles” (PDF), offers several projections of adoption of alternative vehicles and compares how gasoline-powered midsize and compact cars compare in taxes and fees over their lifetime to battery-electric and plug-in hybrid electric vehicles.
In the base case, projected revenue decreases by $200 million by 2025, but larger adoption of electric vehicles could lead to reduction in revenue generation as large as $900 million in the same period. This revenue decrease could be mitigated by an annual registration fee at 0.6% of the manufacturer’s suggested retail price or a fee of 2 cents per mile.
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