Scipediacontent: Scipediacontent moved page Draft Content 705494593 to Davis Sallee 2019a

2021-02-11T13:40:04Z

Scipediacontent moved page Draft Content 705494593 to Davis Sallee 2019a

Scipediacontent: Created page with " == Abstract == In many countries, the revenue from gasoline taxes is used to fund highways and other transportation infrastructure. As the number of electric vehicles on the..."

2021-02-11T13:40:00Z

Created page with " == Abstract == In many countries, the revenue from gasoline taxes is used to fund highways and other transportation infrastructure. As the number of electric vehicles on the..."

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== Abstract ==

In many countries, the revenue from gasoline taxes is used to fund highways and other transportation infrastructure. As the number of electric vehicles on the road increases, this raises questions about the effectiveness and equity of this financing mechanism. In this paper, we ask whether electric vehicle drivers should pay a mileage tax. Though the gasoline tax has been traditionally viewed as a benefits tax, we instead take the perspective of economic efficiency. We derive a condition for the optimal electric vehicle mileage tax that highlights a key trade-off. On the one hand, there are externalities from driving, including traffic congestion and accidents, that imply a mileage tax is efficient. On the other hand, gasoline tends to be underpriced, so a low (or even negative) mileage tax might have efficiency benefits in encouraging substitution away from gasoline-powered vehicles. We then turn to an empirical analysis aimed at better understanding the current policy landscape for electric vehicles in the United States. Using newly available, nationally representative microdata, we calculate that electric vehicles have reduced gasoline tax revenues by $250 million annually. We show that the forgone tax revenue is highly concentrated in a handful of states and is highly regressive, as most electric vehicles are driven by high-income households, and we discuss how this motivates and informs optimal policy.

== Original document ==

The different versions of the original document can be found in:

* [http://dx.doi.org/10.3386/w26072 http://dx.doi.org/10.3386/w26072]

* [https://www.journals.uchicago.edu/doi/pdf/10.1086/706793 https://www.journals.uchicago.edu/doi/pdf/10.1086/706793],
: [http://dx.doi.org/10.1086/706793 http://dx.doi.org/10.1086/706793]

* [https://www.nber.org/papers/w26072 https://www.nber.org/papers/w26072],
: [https://www.journals.uchicago.edu/doi/full/10.1086/706793 https://www.journals.uchicago.edu/doi/full/10.1086/706793],
: [https://m.nber.org/papers/w26072 https://m.nber.org/papers/w26072],
: [https://www1050.nber.org/papers/w26072 https://www1050.nber.org/papers/w26072],
: [https://ideas.repec.org/a/ucp/epolec/doi10.1086-706793.html https://ideas.repec.org/a/ucp/epolec/doi10.1086-706793.html],
: [https://sociorepec.org/publication.xml?h=repec:nbr:nberch:14286&l=en https://sociorepec.org/publication.xml?h=repec:nbr:nberch:14286&l=en],
: [https://academic.microsoft.com/#/detail/2944862251 https://academic.microsoft.com/#/detail/2944862251]

DOIS: 10.1086/706793 10.3386/w26072

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Davis Sallee 2019a - Revision history

Scipediacontent: Scipediacontent moved page Draft Content 705494593 to Davis Sallee 2019a

Scipediacontent: Created page with " == Abstract == In many countries, the revenue from gasoline taxes is used to fund highways and other transportation infrastructure. As the number of electric vehicles on the..."