Kilowatt-hour fee: taxing electricity consumption in mobility

Voiture électrique en charge

The difference between internal-combustion vehicles and electric vehicles cannot be summed up by engine type alone. The difference is also tax-related, as electric vehicles do not consume fuel and are therefore not subject to taxes on petroleum products. For the moment, electric vehicles only account for a small fraction of the car fleet in circulation. However, as the proportion of electric vehicles in circulation increases, the tax shortfall will also grow, making the use of a charge on the use of electric vehicles inescapable. Several solutions can be considered. One such solution would be to tax vehicle electricity consumption by importing the current fuel tax model: this would be a tax on electricity consumption (kWh fee), which considers electricity as an energy product that can be taxed like fuel.

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What scale of implementation?

  • National

Who pays?

  • Taxpayer

Other solutions to discover:

Droit d'usage infrastructure : la vignette

Infrastructure usage rights: an analysis of the Eurovignette and the Swiss vignette

The road usage charge is often implemented through the display of a vignette (sticker) which gives the holder the right to use all or part of the road network.
Taxe sensible aux émissions

Putting a price on carbon to control emissions more effectively

The carbon tax and carbon emission quotas are economic measures aimed at making polluters pay in proportion to their emissions (the polluter pays principle) and ultimately to steer companies’ and citizens’ behaviours and decisions towards a reduction in polluting emissions.
Road User charge

Road usage charge: charging users rather than consumers

Faced with congestion, pollution and mobility funding issues, cities such as Singapore and States such as Oregon are currently testing a mileage charge system which entails charging users in proportion to their use of the road network.

La Fabrique de la Cité

La Fabrique de la Cité is a think tank dedicated to urban foresight, created by the VINCI group, its sponsor, in 2010. La Fabrique de la Cité acts as a forum where urban stakeholders, whether French or international, collaborate to bring forth new ways of building and rebuilding cities.