Jumpstarting the electric car market The Daily Caller

16 мая 2014 | Author: | Комментарии к записи Jumpstarting the electric car market The Daily Caller отключены
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Jumpstarting the electric car market

having already sunk of dollars into the “environmentally car market, Washington is pedaling the gas for In his 2011 State of the Union President Obama vowed to our dependence on oil” and said the U.S. would “become the country to have one million vehicles on the road by 2015.” this may just be an arbitrary for environmental romanticism, the president that market sovereignty is achieved through government

Obama’s recent budget includes a request to Congress to the current $7,500 tax credit an on-demand rebate offered to who purchase an “advanced technology such as the Nissan Leaf or the Volt, cars that are fuel efficient than of today’s vehicles.

Over the past year, the has invested $2.4 billion in and development to improve EV batteries and $300 million in grants to working to reduce petroleum In addition, a special government is now being discussed that provide thousands of free stations across nine a subsidized $37 million green run by Coulomb Technologies. The goal is to current electric car owners and entice prospective buyers to fuel-efficient vehicles.

The problem is that electric only appeal to a small group, which will be the case for a while. Deloitte interviewed industry experts and potential buyers and found within the next 10 years, “young, very high individuals” those making than $200,000 a year even be interested in purchasing an car.

Yes, people the idea of owning a car that is friendly,” but they are not ready to over $40,000 for a slower, less attractive vehicle at the expense. Case in point: a Chevy Volt sells for a Mercedes-Benz C350 sells for

Even Bill Reinert, the of Toyota’s advanced technology and one of the lead designers of the Prius, that plug-in hybrids are a of a niche,” as they account for a three percent of US car sales.

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The is not necessarily whether electric are the future (they very could be); it is how and when will capture the market and the behind who funds the engineering and of them. Currently, the government a large portion of the bill: the comes through subsidies and the comes through consumer tax

Should the government, and ultimately subsidize the electric car market? The is not only whether subsidizing cars is fair but also subsidizing electric cars is a use of taxpayer money. “I have seen an industry that subsidies for any period of time this that didn’t and then cost taxpayers more,” says David a senior economist at the Mackinac for Public Policy.

Skeptics like Littman that an industry that is to attract private investment is an that either has no future or is not to penetrate the market. Take for the Nissan Leaf, an all-electric car takes eight hours to and has a range of only 100 miles. As the Institute’s Patrick Michaels has put it, “If could easily make from it without a federal they would be there. they don’t think a big demand.”

The moment investors and private react without government is the moment the electric car market Market leaders and natural transitions determine a market, not officials.

Brian Koenig is a and economics writer who has been in Real Clear Politics, The New and the St. Louis Post-Dispatch, among national and local publications. his website at www.brianekoenig.com .

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