Study: Switch to alternative fuels could cost state millions in revenue

traffic congestion on a city freeway

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Alternative fuels like electricity and natural gas could power about 13 percent of passenger vehicles and 11 percent of commercial vehicles in Texas by 2040, if the state adopts the technology, a new study says. As a result, by 2035, Texas government could lose as much as $200 million in revenue from fuel taxes.

The Transportation Policy Research Center at the Texas A&M Transpiration Institute issued the study, which is based on research conducted by Associate Research Scientist Trey Baker and his team. The study is based on their analysis of several industry forecasts that examined trends in alternative fuel technology, factors that might affect adoption of the technology, and the potential effects on the state’s highway fund.

The five sources of fuel that are considered as alternatives to gasoline and diesel are electricity, natural gas, ethanol, propane and hydrogen fuel cells.

More at the Texas A&M Transportation Institute

info graphic showing effects of alternative fuels on Texas tax revenues

Infographic: Texas A&M Transportation Institute | Download