As the sale of gasoline goes down (drivers driving less and buying less) so goes the tax revenue. Government bodies have long ago set themselves a trap by depending on taxes raised from the sale of gasoline. Some areas have replaced that with traffic cameras to issue tickets. Might work. The two biggest issues for government might be:
- Fuel effiencient vehicles are a good thing for drivers, a bad thing for tax revenue.
- Electric vehicles stop the flow of lucrative gasoline tax. How will governments replace that revenue? or How will governments keep that money flow comming in from drivers?