Explaining the adoption of electric vehicle fees across the United States

Improvements in vehicle fuel efficiency, inflation, and the increasing adoption of electric vehicles (EV) have negatively affected the revenue-generating ability of the motor fuel tax, a major source of highway funding. Many U.S. states have adopted a surcharge levied on electric vehicles as a revenue-generating mechanism to address transportation funding challenges. In this study, we explore the determinants of the adoption of EV fees at the state level using a discrete-time event history analysis. Our findings indicate that state decisions about EV fees hinged upon the reliance on the motor fuel tax, fuel efficiency, growth in EV sales, roadway conditions, the growth in vehicle miles traveled, political environment, and the proportion of neighboring states with an EV fee.