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Research shows a $0.25 U.S. gas tax increase would raise $840 billion in revenue, add 1.2 million additional electric vehicles to the road, cut total fuel use more than 1.3 billion barrels and would equal a $29/ton carbon tax on the transportation sector.
Renewable Electricity Levelized Cost Of Energy Already Cheaper Than Fossil Fuels, And Prices Keep Plunging
Renewable electricity's levelized cost of energy became the cheapest source of new U.S. power generation in 2017, and building new wind is often cheaper than running existing coal. As renewable energy costs continue their relentless decline, fossil fuels continue to fall further from profitability.
The U.S. Chamber of Commerce's proposal to raise the federal fuel user fee (gas tax) $0.25 per gallon has driven debate over U.S. transportation funding. This research note finds the proposal would generate $840 billion in federal government revenue by 2050 and cost U.S. drivers $30 billion per year by 2022. It would also increase annual EV sales by 100,000 per year and add 1.2 million total additional EVs to U.S. roads while reducing annual fuel consumption 40-45 million barrels and cutting total fuel use more than 1.3 billion barrels, both by 2050, and would equal a national carbon tax of $29 per ton.
Ei research into the potential impacts of a gas tax increase are cited in an article discussing President Trump's support for the proposal to fund infrastructure improvements.