The Distributional Impacts of a VMT-Gas Tax Swap
Author | : Gilbert E. Metcalf |
Publisher | : |
Total Pages | : 0 |
Release | : 2022 |
ISBN-10 | : OCLC:1334322457 |
ISBN-13 | : |
Rating | : 4/5 (57 Downloads) |
Book excerpt: Using data from the 2017 National Household Travel Survey (NHTS), I find that the income elasticity of fuel intensity is negative and that this revenue-neutral tax swap to be mildly progressive for all household incomes below $200,000. This is driven, in part, by the fact that higher income households are more likely to drive hybrid and electric vehicles and to own newer vehicles which, due to increasingly stringent fuel economy standards, tend to be more fuel efficient. How the progressivity of a tax swap changes as fuel economy standards are raised and EV market penetration increases depends on who purchases EVs and more efficient vehicles. Federal policy will likely play a role in influencing the future distribution of EV ownership. In addition, I find the tax swap benefits rural drivers and has no appreciable differential impacts on Black and Hispanic households.