Reaching Biden’s goal to cut emissions requires a transition from internal combustion engines to zero emission vehicles, such as plug-in electric vehicles, but a number of factors are slowing that transition, among them the price of PEVs. PEVs tend to cost $10,000–$20,000 more than their internal combustion engine counterparts, a price point that is slowing customer acceptance. Surging prices of raw materials used in making batteries and electric motors also have hindered a reduction in the price gap.
Graham and Brungard found that the midpoint of prices of all new vehicles sold in the U.S. in 2021—both PEVs and ICE vehicles—to be roughly $45,000. Of the 108 total PEV models offered to U.S. consumers in 2022, only 17 featured a base price below $46,000. Few of those affordable models are appealing to consumers. The good news is that the number of affordable PEVs on the market are increasing, but the dominant U.S. producer of electric vehicles, Tesla, is not prioritizing affordable models.
Without more rapid penetration of plug-in vehicles into the affordable end of the new vehicle market, Biden’s goals could be impossible. However, the commercialization of plug-in models in Europe provide hope for reaching the benchmarks, but it will require sufficiently favorable public policies to spur greater consumer acceptance.
“Instead of relying on unrealistic mandates from California and other states, the federal government needs a comprehensive electric-vehicle policy—performance standards and incentives—similar to what has been adopted in the European Union,” Graham said.
More information: John D. Graham & & Eva Bungard, Affordable Electric Vehicles: Their Role in Meeting the U.S. Contribution to the Paris Climate Goals, Frontiers in Environmental Science (2022). DOI: 10.3389/fenvs.2022.962942
Citation: Reaching national electric vehicle goal is unlikely by 2030 without lower prices, better policy (2022, September 13) retrieved 13 September 2022 from https://techxplore.com/news/2022-09-national-electric-vehicle-goal-prices.html
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