https://cepr.net/the-problem-with-electric-vehicles/
"For the last quarter century, those of us hoping we could slow global warming
were anxious to see a quick conversion to electric vehicles (EVs). If we could
get most people using electric vehicles, and have the energy coming from clean
sources, we could radically reduce greenhouse gas emissions.
The problem was that EVs were considerably more expensive than their
conventional counterparts. There were savings in operation due to lower
maintenance, and the electricity generally costing less than gas, but that
usually was not enough to offset the higher purchase price.
This was the motivation for the tax credit that the Biden administration
included in the 2022
Inflation Reduction Act. The idea was to bring the price
of EVs closer to the price of conventional cars.
After worrying for decades that the price of EVs was too high, we now have a
different problem, the price is too low. China is now producing over ten
million electric cars a year, some carrying price tags of under $10k. This has
prompted terror here, with politicians tripping over themselves to find ways to
keep people from buying them.
The concern is that it will wipe out the domestic U.S. auto industry. After
telling us for decades that Americans don’t want to buy electric cars, people
like Donald Trump are yelling about how we have to take strong measures, like
100 percent tariffs, to prevent them from buying electric cars.
This would be great comedy, except that it is a huge issue, and no one
apparently cares that politicians are inconsistent. But those of us who are not
running for office have the ability to talk about the issue seriously.
First, if China wants to export cheap EVs to the world, we should see that as a
good thing, not an act of war. The flat-earth society may not believe in global
warming, but the rest of us don’t have that luxury. Tens of millions of
low-cost EVs being sold around the world in the next few years would hugely
help advance the effort to slow emissions. If China wants to subsidize this
process, we should be thanking them.
At the same time, it does make sense for us to protect our domestic industry.
We do have a genuine national security interest in not being dependent on China
for our cars."
Via Rod Mesa and Kenny Chaffin.
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
