Government should remove all preferences for EVs and allow them to compete and grow on a free market.
By Alex Epstein
Government should remove all preferences for electric vehicles and allow them to compete and grow on a free market.
This will enable EVs to reach their full potential to provide affordable, no-tailpipe-emissions transport without harming consumers or the grid.
Background
EVs have generated excitement because they have some performance advantages and no tailpipe emissions. However, EVs arenât currently cost-effective for most uses and face scalability issues with Americaâs inadequate grid and small-scale production of key EV materials.š
Goals for good EV policy
Good EV policy should unleash whatever potential EVs have to be a cost-effective, scalable alternative to internal combustion engine (ICE) vehicles, but not harm consumers or the grid by imposing EVs before they are truly cost-effective and scalable.
Todayâs anti-freedom EV policy
EVs get massive subsidies via tax credits (âInflation Reduction Actâ), which coerce drivers into using EVs even when theyâre not truly cost-effective. And the EPA plans emissions regulations so strict that they would ban most ICE sales by 2032.²
False rationale for EV preferences
Myth: Fossil fuels have created a âclimate emergencyâ that can only be ended if we mass-adopt EVs.
Truth: Fossil fuels have created unprecedented climate safety with no need to rapidly reduce greenhouse gas emissionsâwhich scalability-challenged EVs canât do anyway.Âł
- America is not in a âclimate emergencyâ.Rising CO2 levels are:
- Not dire:Â Humans are safer from climate than ever.
- Not temporary: They will rise for decades.
- Not in our control: We emit 1/7 of CO2âand falling.â´
- If we were in a climate emergency, forced EVs wouldnât help much.With current âgreenâ supply chain regulations pushing production abroad, any remotely cost-effective EV manufacturing can only happen in places with emissions-intensive production, like China.âľ
- While EVs have no tailpipe emissions, they leave the factory with higher emissions from their supply chain than ICEs. Whether they can catch up with an ICE vehicle of the same size depends on the electricity mix and battery lifetime. But the emissions are never close to zero.âś
Destructive consequences
EV preferences, by forcing us to use far more EVs than we otherwise would, when our grid and domestic supply chains are not ready, harm Americans via 1) an inferior product at cost to taxpayers, and 2) catastrophic electricity shortages.
- An inferior productEven with massive EV preferences, only 7.6% of vehicles sold in 2023 were EVsâalmost all from luxury brands like Tesla. Most poor and middle class Americans canât afford to deal with EV cost, range, and inconvenience issuesâand itâs immoral to force them to.âˇ
- Catastrophic electricity shortagesAmerica is already in an electricity crisis, and planned EPA policies threaten to reduce reliable grid capacity 20% by 2030.
Our governmentâs plan to mass-mandate electricity-hungry EVs would lead to a third-world grid.
- CA is already having major problems with EV charging. On Aug 31, 2022, the CA grid operator urged consumers to cut electricity usage during a heatwave, including using less airconditioning(!) and refraining from âcharging electric vehicles.âImagine what would happen with over 50% EVs.â¸
A new energy freedom policy
Establish a truly free auto market by abolishing EV subsidies and other fuel subsidies.
- End EV subsidies: Remove all EV tax credits
- Prevent the EV mandate: Direct the EPA to cancel their proposed greenhouse gas standards that would de-facto ban most ICEs
Common misconception about EV preferences
Myth: Without government EV preferences, we lose out on potential EV benefits such as low maintenance costs, lower overall costs, and lower urban air pollution.
Truth: EV freedom allows us to take advantage of any real EV benefits as and when they arise at scale.
Positive consequences
If EVs compete on a truly free market, Americans will be free to drive whatever car they judge best for their needs. EV makers and supporters will be incentivized to actually deliver a superior product, including a grid with adequate electricity.
Internal Revenue Service â Credits for new clean vehicles purchased in 2023 or after
3 Alex Epstein â Do Not Declare a âClimate Emergencyâ
4 UC San Diego â The Keeling Curve
For every million people on earth, annual deaths from climate-related causes (extreme temperature, drought, flood, storms, wildfires) declined 98%âfrom an average of 247 per year during the 1920s to 2.5 per year during the 2010s.
Data on disaster deaths come from EM-DAT, CRED / UCLouvain, Brussels, Belgium â www.emdat.be (D. Guha-Sapir).
Population estimates for the 1920s from the Maddison Database 2010, the Groningen Growth and Development Centre, Faculty of Economics and Business at University of Groningen. For years not shown, population is assumed to have grown at a steady rate.
Population estimates for the 2010s come from World Bank Data.
Our World in Data â Annual COâ emissions by world region
5 Mark P. Mills â Electric Vehicle Illusions
Alex Epstein â Every ânet zero by 2050â myth, refuted
6 Mark P. Mills â Electric Vehicle Illusions
8 Alex Epstein â Gavin Newsomâs 10 favorite myths about energy and climate, refuted
California ISO â California ISO extends Flex Alert to Thursday, Sept. 1
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