Ford is introducing an electric version of its Focus. Mitsubishi, BMW, Tesla and other carmakers are also introducing new electric vehicles. And after a slow start, GM is on track to sell between 15,000 and 20,000 of its award-winning Volts this year. But this technology, like any infant industry, needs our support. Given this, it would be folly for Congress to slash the existing tax credit. If we cast a cold eye on the economics of electric vehicles, the credit is a bargain. Research shows that air pollution causes asthma, heart attacks, strokes and lung cancer – and costs taxpayers billions. A 2009 study by the Center for Entrepreneurship and Technology at the University of California at Berkeley estimates that over 20 years, electric vehicles and plug-in hybrids could reduce health costs by $4.5 billion to $11.2 billion. On top of money and lives saved, we have another clear reason to support electric vehicles: energy security. Yes, gas prices have fallen a bit in the U.S., but many independent researchers believe this is just a temporary reprieve. Electric cars not only save consumers money at the pump, they make our economy more resilient to price shocks and reduce the money flowing to hostile nations. – Nicholas L. Cain, Claremont Graduate University
It’s obvious now that electric vehicles can’t compete with gasoline-powered cars, even with generous government subsidies. And for years automotive engineers have documented that the performance of electric vehicles falls short in virtually every aspect. What’s truly shameful is that such disparities have done nothing to change policy. Subsidizing electric vehicles has been a devil’s bargain, making the development of other alternative technologies like conventional hybrids and advanced gasoline engines more difficult. Since 2008, taxpayers have spent or provided loan guarantees of $6.5 billion for electric vehicles. That includes $2.4 billion for battery and electric drive component manufacturing, $3.1 billion in loan guarantees for electric vehicle projects, and $1 billion in tax credits for the vehicles. Using taxpayer dollars to favor one automotive technology over another is contrary to the free-market principles that undergird our economy. Simply put, subsidizing electric vehicles doesn’t make economic sense. – Mark J. Perry, American Enterprise Institute
