Revenue reduction from electric vehicles.

• Position: Taxes - Brief article

An increased adoption of electric vehicles would result in reduced consumption of gasoline and consequently a decrease in gasoline tax revenue that currently supports infrastructure development and maintenance in the U.S., according to researchers from Carnegie Mellon University, Pittsburgh, Pa. The researchers say the loss of tax revenue could be between $200,000,000 and $900,000,000 by 2025, depending on the EV adoption rate.

"Since 50% to 70% of fees are collected through vehicle use by way of taxes on gasoline, large-scale adoption of EVs would result in a decline in revenue generation since they use little to no gasoline as fuel," notes lead author Alan Jenn, a Ph.D. student in the Department of Engineering and Public Policy.

Adds associate professor Ines Lima Azevedo: "Baseline midsize and compact vehicles such as the Toyota Camry and Honda...