Road pricing must start with electric vehicles

Research output: Contribution to Newspaper/Magazine/BulletinArticle

Abstract

Electric vehicles provide an opportunity to introduce road pricing reforms, but ‘clean air tax’ lobbyists threaten to embed poor road-use habits.

Road pricing aims to put a value on motorists’ use of roads while providing market signals for constructing and maintaining the infrastructure. It also encourages efficient road-use behaviours by placing a direct charge on motorists’ actual use of roads.

Based on projections by BITRE, congestion associated with “business as usual” road use is likely to cost $30 billion by 2030. This cost is avoidable if a system of road-use charging is introduced, and Victoria’s electric vehicle (EV) road-use charge is an important first step. However, claims by the EV lobby that a charge on EVs is a tax on “clean air” that stifles the uptake of EVs are overstated and likely to embed inefficient road use behaviours for the foreseeable future.
Original languageEnglish
Pages1-3
Number of pages3
Specialist publicationPearls and Irritations
PublisherJohn Menadue
Publication statusPublished - 17 May 2021

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