Should Electric Vehicle Drivers Pay a Mileage Tax?

August 21, 2019

A new working paper by Lucas Davis and Jim Sallee explores the impact that electric vehicles have on gasoline tax revenues. They take a close look at where the gas tax revenue is coming from: which states and which households are bearing the burden? Since most electric vehicles are driven by those with higher incomes, gasoline taxes can be highly regressive. Would a tax on mileage instead of gas be better? 

Check out their working paper to learn more: "Should Electric Vehicle Drivers Pay a Mileage Tax?"  NBER Working Paper No. w26072