When Tennesseans fuel up, much of their money flows out of state. But that hole could be patched with electric cars, according to a new study.
In 2019, Tennesseans spent more than $11.3 billion on fuel — gasoline and diesel — according to data from the Southern Alliance for Clean Energy (SACE). More than $8.2 billion of that money left the state for other states and countries with oil reserves or petroleum processing plants. As cars become more fuel efficient and stop hitting the pump as often, Tennessee could see even less money, the report says.
But what if all those cars and trucks (and all the fuel dollars spent on them) were electric? SACE researchers crunched the numbers and found state drivers would save more than half on fueling their rides, and two-thirds of that money would stay here. In an all-electric Tennessee, drivers would have spent more than $5.7 billion to charge their cars and more than $3.9 billion of that money would remain in Tennessee.
Across the Southeast, consumers spend $94 billion on gas and diesel annually, according to the report. The figure would be cut nearly in half to $52 billion if spent on electricity. Of that, about $35 billion would be kept in the region, a $5 billion increase over fuel spending. Add it up, and SACE said electrifying Southeast transportation could be a $47 billion boon to the region each year.
