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What is an unintended consequence of the EV transition?

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Tony Paradiso's picture
Principal, E3

I provide consulting services primarily assisting renewable energy-related companies in areas such as strategic planning, marketing, and operations. I have helped bring to market numerous leading...

  • Member since 2023
  • 165 items added with 32,532 views
  • May 26, 2023

The momentum behind EVs is undeniable. In addition to being emission-free, in most cases EVs also have a lower cost of operation. No more $50-100 fill-ups. But societal transitions often come with unintended consequences and EVs are no different.

In this case it’s road maintenance. Many, if not all states fund highway maintenance through gas taxes, but EVs pay no gas taxes. And as the EV market share increases tax revenues will continue to decline.

New Hampshire is latest state to seek incremental registration fees on EVs and hybrids. Similar fees already exist in 19 states. Currently Georgia ($200), Indiana ($150) and Idaho ($140) have the three highest fees on EVs. Utah ($60) and Colorado ($50) charge the lowest.

Like everything, roads aren’t getting any cheaper to maintain so expect every state to eventually impose such fees. Also expect these fees to continue to escalate, eating into the operating savings for EV ownership.


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