Would a VMT tax kill fuel efficiency, EVs?

An electric car killer?

When gas prices surged this summer, demand for hybrid cars was intense. High fuel prices made fuel efficient vehicles a very valuable commodity.

Yet, the future may not be driven by fuel prices, but mileage driven if Transportation Secretary Ray LaHood and many in the White House have their way. Instead of increasing gas taxes to fund the growing gap in infrastructure funds, the future may by a computer chip in your car that enables the government to charge drivers for miles driven.

But couldn't that kill the electric car?

The cost premium between electric cars and conventional vehicles is steep and it will be for at least a decade, maybe decades. Many believe this cost will be significantly recovered via the relative cheapness of electric power versus gasoline. However, won't pushing Americans to drive less - via a VMT tax - lead to less oil demand and cheaper oil prices?

Of course, the same could be said of electric cars. As they are embraced, there will be less demand for fuel and, therefore, cheaper fuel prices. Ironically, however, electricity prices will increase.

Essentially, our entire automobile culture no longer makes economic sense, at many levels, and fixing that problem is going to have a huge effect on American car culture, beyond just new efficient technologies or even fuel prices.

I'm sure glad I live close to a subway line.