Publication | BRG

State Policy Briefs: The Effect of Zero-Emission Vehicle Policies on Dedicated Highway Infrastructure Funding

Kevin W. Christensen, Andreas Groehn, and Bill Hamm

May 2023

In a series of state policy briefs, Kevin W. Christensen, Andreas Groehn, and Bill Hamm estimate the loss in federal and state fuel excise taxes that will occur upon a state’s adoption of a zero-emission vehicle (ZEV) policy that phases out the sale of internal combustion vehicles. California was the first state to adopt a ZEV policy, and other states have adopted or considered adopting similar ZEV policies.

Construction and maintenance of transportation infrastructure in the United States is funded primarily with revenues derived from federal and state excise taxes on gasoline and diesel fuel. When ZEVs replace vehicles with internal combustion engines, the demand for gasoline—and, hence, federal and state fuel tax revenues—goes away. Thus, the adoption of ZEV policies likely will have a profound impact on transportation infrastructure, jobs, and personal income.

View the state policy briefs:

Colorado Minnesota Oregon
Connecticut Nevada Rhode Island
Maine New Jersey Vermont
Maryland New Mexico Virginia
Massachusetts New York Washington

BRG Experts

Related Professionals

Kevin W. Christensen


Washington, DC

Andreas Groehn

Managing Director

Washington, DC, London

William G. Hamm

Managing Director

Washington, DC