Chapter
Aug 28, 2019
International Conference on Transportation and Development 2019

Evaluating Fuel Tax Revenue Impacts of Electric Vehicle Adoption in Virginia Counties: Application of a Bivariate Linear Mixed Count Model

Publication: International Conference on Transportation and Development 2019: Innovation and Sustainability in Smart Mobility and Smart Cities

ABSTRACT

Increasing electric vehicle (EV) shares and fuel economy pose challenges to a fuel tax-based transportation funding scheme. This paper evaluates the fuel tax revenue impacts of such trends using Virginia as a case study. First, a county-level bivariate count model is developed using vehicle registration data in 132 counties from 2012 to 2016. Model results indicate strong correlation between presence of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) on a county basis. Counties with higher percent of males are associated with higher BEV (but not PHEV) counts. In contrast, higher average commute time is predicted to increase the number of PHEVs in each county, but not BEVs. Greater population density, population over 65, population with graduate degrees, and household size are found to increase PHEV and BEV counts while more households with children is associated with fewer EVs. The analysis forecasts 0.6% to 10% statewide EV adoption by 2025, with an adoption rate of 2.4% in the most likely scenario. Nine scenarios, combining different predictions of EV adoption and fuel economy improvement, project statewide fuel tax revenue to decrease by 5% to 19%, relative to 2016 receipts. Furthermore, though all counties are predicted to experience decreasing fuel tax revenue contribution per vehicle (due to fuel economy improvements and EV adoption), the decrease is more significant in urban areas. Model results predict that on average a light duty vehicle in a rural area will pay 28% more in fuel taxes than its urban counterpart by 2025. The framework proposed here provides a reference for other regions to conduct similar analysis using public agency data in the vehicle electrification era.

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ACKNOWLEDGEMENTS

This study is funded by Mid-Atlantic Transportation Sustainability University Center (MATS UTC) Grant No: 146221. The authors would like to thank Lam Phan for providing VA DMV vehicle registration data.

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Go to International Conference on Transportation and Development 2019
International Conference on Transportation and Development 2019: Innovation and Sustainability in Smart Mobility and Smart Cities
Pages: 91 - 110
Editor: David A. Noyce, Ph.D., University of Wisconsin–Madison
ISBN (Online): 978-0-7844-8258-2

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Published online: Aug 28, 2019

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Wenjian Jia [email protected]
Dept. of Engineering Systems and Environment, Univ. of Virginia. E-mail: [email protected]
Zhiqiu Jiang [email protected]
Dept. of Urban and Environmental Planning, Univ. of Virginia. E-mail: [email protected]
T. Donna Chen [email protected]
Dept. of Engineering Systems and Environment, Univ. of Virginia, PO Box 400742, Charlottesville, VA 22906. E-mail: [email protected]
Rajesh Paleti [email protected]
Dept. of Civil and Environmental Engineering, Pennsylvania State Univ., University Park, PA 16802. E-mail: [email protected]

Author Contribution Statement

The authors confirm contribution to the paper as follows: study conception and design: W. Jia, T.D. Chen, Z. Jiang; data collection: W. Jia, Z. Jiang; analysis and interpretation of results: W. Jia, Z. Jiang, T.D. Chen, R. Paleti; draft manuscript preparation: W. Jia, T.D. Chen. All authors reviewed the results and approved the final version of the manuscript.

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