1) The presentation discusses introducing road usage charges on electric vehicles (EVs) in Australia. 2) A road usage charge is not expected to discourage EV adoption, as other factors currently have a greater impact on purchase decisions. 3) Population growth, increased traffic from EVs and driverless vehicles, and decreasing costs will exacerbate traffic congestion unless reforms are made.

1. Road Pricing and Electric Vehicles
Where to from here?
CILTA, Canberra, 12 October 2021
Dr Michael de Percy FCILT
michael.depercy@canberra.edu.au
www.politicalscience.com.au
@madepercy
John Poljak
john.poljak@keynumbers.com
www.keynumbers.com
@keynumbers_

2. 1. We are in the midst of a critical juncture in transport policy: Road
user charges can be introduced now; politically, it will be more
difficult later.
2. A road use charge on EVs is not a disincentive to the take-up of
EVs in Australia.
3. EVs and driverless vehicles (the next likely critical juncture) amid
population growth and decreasing operating costs will increase
traffic congestion.
4. The status quo (beginning circa 1920s) is unsustainable – a road
pricing system (beginning with road user charges) will ultimately
improve infrastructure productivity.
MAJOR ARGUMENTS

3. • For more information on the concepts or reports we draw on here today, please
visit www.politicalscience.com.au and www.keynumbers.com
• See also the references in the last slide. The PowerPoint file is available via
SlideShare and can be accessed from www.politicalscience.com.au.
SUPPORTING MATERIALS
www.politicalscience.com.au www.keynumbers.com

4. FUEL EXCISE REVENUE IS DECLINING, ROAD USE IS INCREASING
Source: Australian Infrastructure Statistics Yearbook 2020

5. Historical habits and no point-of-sale pressure (BTE 1977)
“[P]rivate motor vehicle operation is essentially outside [cost recovery]. This
statement is not made merely to sidestep a difficult issue, but has sound
philosophical grounds. In… airlines, railways and so on… [there is] an identifiable
interface between a complex background organisational structure and an
individual user…
The private motor vehicle operator… pays many separate fees… [and in doing so],
at least appears to pay for… roads”.
• Road use is a habit, but technology negates the “public good” idea today
WHY IS IT SO DIFFICULT TO INTRODUCE ROAD USE CHARGES?

6. NETWORKED TECHNOLOGIES POLICY MODEL

7. THE MODEL APPLIED TO ROAD TRANSPORT POLICY

8. MAJOR DISINCENTIVES
1. Purchase cost of an EV compared to petrol/diesel vehicle
2. Current accessibility to charging infrastructure
3. Range of EV models to choose from
4. Driving range compared to petrol/diesel (see Chasing Cars…)
5. Convenience of recharging an EV
(Source: EV Council and carsales 2021. See also Vidyattama et al. 2019)
Source

9. An old transport ministers’ joke:
Reforming road transport is a great idea, and I
can’t wait to see my successor implement it.
Or… we can take advantage of the current critical juncture to
change the policy status quo now…
REFORM RELUCTANCE (LYON 2015)

10. The University of Canberra acknowledges the Ngunnawal people, traditional custodians
of the lands where Bruce Campus is situated. We wish to acknowledge and respect their
continuing culture and the contribution they make to the life of Canberra and the region.
We also acknowledge all other First Nations Peoples on whose lands we gather.
QUESTIONS? Thank you
Dr Michael de Percy FCILT
michael.depercy@canberra.edu.au
www.politicalscience.com.au
@madepercy
John Poljak
john.poljak@keynumbers.com
www.keynumbers.com
@keynumbers_
Road Pricing and Electric Vehicles: Where to from here?

11. De Percy, M.A. (2021). Road pricing must start with electric vehicles. Pearls and Irritations: John Menadue’s
Public Policy Journal, 17 May. https://johnmenadue.com/road-pricing-must-start-with-electric-vehicles/.
De Percy. M.A. (2020). Road user fee a step to reform. The Australian, 25 November.
https://www.theaustralian.com.au/commentary/road-user-fee-for-electric-vehicles-a-step-to-reform/news-
story/1269ac15b5b1cbb76d6358f608cf509d.
De Percy, M.A. and Batainah, H.S. (2021). Identifying historical policy regimes in the Canadian and Australian
communications industries using a model of path dependent, punctuated equilibrium, Policy Studies, 42(1): 42-59
DOI: 10.1080/01442872.2019.1581161.
De Percy, M.A. and Wanna, J. (Eds.) (2018). Road Pricing and Provision: Changed Traffic Conditions Ahead. Canberra:
ANU Press. DOI: http://doi.org/10.22459/RPP.07.2018.
Infrastructure Partnerships Australia (2019). Road User Charging for Electric Vehicles.
https://infrastructure.org.au/ruc-for-evs/.
Vidyattama, Y., Tanton, R., de Percy, M.A., and Nakanishi, H. (2019). Simulating the take up of electric vehicles based
on the financial benefit of the vehicle. Paper presented at the 41st Australasian Transport and Research Forum, Hyatt
Hotel, Canberra, 30 September-2 October 2019.
Please see details of all other references at: https://www.politicalscience.com.au/2021/10/draft-road-pricing-and-
electric.html and https://www.politicalscience.com.au/2021/05/comparing-australias-uptake-of-evs-with.html.
REFERENCES