Distance based charges in Great Britain.

Penafiel Mera, Allan ORCID: https://orcid.org/0000-0002-3010-2230 and Santos, Georgina ORCID: https://orcid.org/0000-0002-8446-8297 2025. Distance based charges in Great Britain. Energy Reports Item availability restricted.

	PDF - Accepted Post-Print Version Restricted to Repository staff only Download (958kB)
	PDF (Provisional File) - Accepted Post-Print Version Download (17kB)

Abstract

We estimate the reduction in tax revenues that would result from the electrification of road transport in Great Britain over the period 2025-2050 and a revenue-neutral distance-based charge to recoup these revenues. Our model uses the assumptions and data from the Common Analytical Scenarios produced by the Department for Transport (2023a, b). We find that under fast decarbonisation scenarios the revenues from fuel duty, VAT on the pre-tax price of fuel and on fuel duty, practically disappear, and under slow decarbonisation scenarios, they decrease substantially by 2050. The decrease is between 40% and 50%. Our revenue-neutral distance-based charge is designed to vary with vehicle type and trip purpose (work/non- work), and ranges from 0.4 to 3.8 pence per km in 2025, to 2.2 to 34.6 pence per km in 2050, depending on the vehicle type/trip purpose combination, the scenario, and the elasticity assumed. Importantly, although it applies on top of the fuel duties and is payable by both electric vehicles and fossil fuel vehicles, electric vehicles continue to offer significant cost savings.

Item Type:	Article
Status:	In Press
Schools:	Schools > Geography and Planning (GEOPL)
Publisher:	Elsevier
ISSN:	2352-4847
Date of First Compliant Deposit:	12 December 2025
Date of Acceptance:	11 December 2025
Last Modified:	15 Dec 2025 12:45
URI:	https://orca.cardiff.ac.uk/id/eprint/183206

Actions (repository staff only)

Edit Item