The Institute for Energy Research is a not-for-profit organization that conducts intensive research and analysis on the functions, operations, and government regulation of global energy markets.

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  • Featured Analysis
  • Gas Tax Revenues Will Plummet With Large Increase in Electric Vehicles

  • August 23, 2017

  • Europe and the United States need to prepare for lower gasoline and diesel tax revenues if electric vehicle sales skyrocket as some analysts predict. For example, if electric vehicles were to represent 60 percent of U.S. new car sales by 2030, annual tax revenue (federal and state) would be reduced by $10 billion, or about 14 percent compared to if electric vehicle sales remained flat at 1 percent of new car sales. If electric vehicle sales reached 20 percent of new car sales, gasoline revenue would still fa...
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Europe and the United States need to prepare for lower gasoline and diesel tax revenues if electric vehicle sales skyrocket as some analysts predict. For example, if electric vehicles were to represent 60 percent of U.S. new car sales by 2030, annual tax revenue (federal and state) would be reduced by $10 billion, or about 14 percent compared to if electric vehicle sales remained flat at 1 percent of new car sales. If electric vehicle sales reached 20 percent of new car sales, gasoline revenue would still fa... Read More
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