Call/text: (617) 682-9697 | e: [email protected] | f: 617-391-3067
Should government subsidize car companies that produce electric vehicles?

Should government subsidize car companies that produce electric vehicles?

General – Subsidies

Electric Vehicles — Tax credits and other incentives (2019)

The current state of electric vehicle subsidies (2019)

Pro —¬† Electric Vehicles Good

Why electric vehicles?

UCS electric vehicles

Yes, electric cars will be cheaper (2019)

Pro — Government Subsidies Good

Do electric vehicles need subsidies? (2018). Battery electric vehicles¬†(BEVs) are an important pathway for decarbonizing transportation and reducing¬†petroleum¬†dependence. Although one barrier to¬†adoption¬†is the higher¬†purchase¬†price,¬†advocates¬†suggest that¬†fueland maintenance¬†savings¬†can make BEVs economical over time. To assess this empirically, this paper analyzes the five-year¬†Total Cost of Ownership¬†(TCO) for conventional,¬†hybrid, and¬†electric vehicles¬†in 14 U.S.¬†citiesfrom 2011 to 2015. Results show¬†spatial variation¬†due to differences in state and local¬†policies, fuel prices,¬†insurance¬†and maintenance¬†costs,¬†depreciation¬†rates, and¬†vehicle¬†miles traveled. Yet in nearly all¬†cities, the BEV’s higher purchase¬†price¬†and rapid¬†depreciation¬†outweighed its fuel¬†savings. Extensive sensitivity analyses¬†highlight¬†the impact of¬†key parameters¬†and show that both federal and state¬†incentives¬†were necessary for BEVs to be cost competitive.¬†Future¬†BEV cost¬†competitiveness¬†may improve if innovation and scaling lead to significantly reduced BEV purchase prices, but our analysis suggests that it will be challenging for BEVs to achieve unsubsidized cost¬†competitiveness¬†except in the most optimistic¬†scenarios.

Accelerating US leadership in electric vehicles (2017)

Con — Government subsidies bad

Electric car subsidies aren’t all they are cracked up to be (2019)

EV subsidies: Inefficient and Inequitable (2019)

Congress should let EV subsidies die (2019)

Congress should end EV subsidies (2019)

Rich people don’t need your money to buy EVs (2019)

The high cost of EV subsidies (2019)