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Growing electric vehicle adoption in the U.S.: Implications of different funding policies for infrastructure maintenance and tax burden on families

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  • Burns, Kalee E.
  • Hotchkiss, Julie L.

Abstract

Increased demand for electric vehicles threatens a major source of revenue for maintaining roads and further shifts the burden of the tax toward consumers who can't afford expensive electric vehicles. This paper explores alternative tax policies, assessing their relative regressivity.

Suggested Citation

  • Burns, Kalee E. & Hotchkiss, Julie L., 2025. "Growing electric vehicle adoption in the U.S.: Implications of different funding policies for infrastructure maintenance and tax burden on families," Economics Letters, Elsevier, vol. 252(C).
    • Handle: RePEc:eee:ecolet:v:252:y:2025:i:c:s0165176525001697
    DOI: 10.1016/j.econlet.2025.112332
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    References listed on IDEAS

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    1. John Coglianese & Lucas W. Davis & Lutz Kilian & James H. Stock, 2017. "Anticipation, Tax Avoidance, and the Price Elasticity of Gasoline Demand," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 32(1), pages 1-15, January.
    2. Laurence Levin & Matthew S. Lewis & Frank A. Wolak, 2017. "High Frequency Evidence on the Demand for Gasoline," American Economic Journal: Economic Policy, American Economic Association, vol. 9(3), pages 314-347, August.
    3. repec:cdl:itsdav:qt7fs8295j is not listed on IDEAS
    4. Stephen P. Holland & Erin T. Mansur & Nicholas Z. Muller & Andrew J. Yates, 2016. "Are There Environmental Benefits from Driving Electric Vehicles? The Importance of Local Factors," American Economic Review, American Economic Association, vol. 106(12), pages 3700-3729, December.
    5. West, Sarah E. & Williams, R.C.Roberton III, 2004. "Estimates from a consumer demand system: implications for the incidence of environmental taxes," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 535-558, May.
    6. West, Sarah E. & Williams III, Roberton C., 2007. "Optimal taxation and cross-price effects on labor supply: Estimates of the optimal gas tax," Journal of Public Economics, Elsevier, vol. 91(3-4), pages 593-617, April.
    7. Coyle, David & DeBacker, Jason & Prisinzano, Richard, 2012. "Estimating the supply and demand of gasoline using tax data," Energy Economics, Elsevier, vol. 34(1), pages 195-200.
    8. Chakraborty, Debapriya & Bunch, David S. & Brownstone, David & Xu, Bingzheng & Tal, Gil, 2022. "Plug-in electric vehicle diffusion in California: Role of exposure to new technology at home and work," Transportation Research Part A: Policy and Practice, Elsevier, vol. 156(C), pages 133-151.
    9. repec:cdl:itsdav:qt0tn4m2tx is not listed on IDEAS
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    More about this item

    Keywords

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    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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