Study: EV Subsidies Would Better Benefit Smaller Battery Packs
One major point of contention for electric vehicles is their reliance on government tax credits to bring down prices. A new study suggests that the government is going about these tax credits wrong, subsidizing EV’s and hybrids with big battery packs, when subsidizing vehicles with smaller packs would have more social and environmental benefits.
Apparently not. The study, by Jeremy Michalek, finds that by subsidizing vehicles with big battery packs, the returns (in terms of lower oil usage and lower emissions) are lower than if the tax credit subsidized more vehicles with smaller batteries. But how?
It’s all a numbers game. Even with the $7,500 tax credit, the Chevy Volt is still a pretty expensive car, and to date fewer than 4,000 have been sold. And because there is a cap on the program, the tax credit will run out sooner, meaning fewer vehicles were subsidized via the program. The study seems to indicate that the government would see the most return on its dollar if it subsidized hybrid and plug-in hybrid vehicles with a range of about 20 miles, versus pure-electric and extended-range plug-in hybrids.
Just like any study, I take the results with a gain of salt…but there is a lot of common sense at work here too. Smaller batteries mean a smaller price tag, which means a much more affordable vehicle, which allows more people a chance to buy one. Makes sense to me, but what do you guys think?
Chris DeMorro is a writer and gearhead who loves all things automotive, from hybrids to HEMIs. You can read about his slow descent into madness at Sublime Burnout or follow his non-nonsensical ramblings on Twitter @harshcougar.
