Gas prices soared past the $4 mark this summer, and according to a recent survey by Consumer Reports, people are driving less and contemplating moving to smaller, more fuel-efficient vehicles. The same study found that 37 percent of car shoppers cite fuel economy as the most important factor when shopping for a new vehicle.
Statistics prove this is the case. According to the U.S. Department of Energy, sales of electric vehicles (EVs) have more than doubled in the U.S. during the first six months of 2013 compared to the same time period in 2012. Since last year, manufacturers have rolled out four new models of EVs bringing the total available to 13.
According to the National Conference of State Legislatures, 27 states and the District of Columbia have EV incentives for individuals, and 13 states have pending legislation regarding them. The incentives range from allowing EVs to use high-occupancy-vehicle lanes (regardless of the number of passengers) to tax exemptions, registration fee reductions and parking incentives. For example, residents of West Virginia who convert or purchase an alternative fuel vehicle can receive an income tax credit for 35 percent of the purchase price or 50 percent of the vehicle conversion cost.
Despite their initial tax benefits for consumers, the repercussions of EV incentives have affected some state gas tax revenues. In Oregon, legislators are considering placing a tax on electric and hybrid vehicles to make up for the lost revenue these cars cause through greater fuel-efficiency.
Opponents of EVs say that these vehicles are not the smoking gun in limiting America’s dependence on foreign oil nor capable of putting a significant dent in climate change. Economist Mark Perry of the University of Michigan says EVs will not reduce U.S. oil imports because oil imports already have fallen dramatically and U.S. refineries are currently flush with oil.
Some also say EVs fail to live up to their “green” promises and in fact cause more environmental harm than good. Although EVs emit no carbon or pollutants into the air while being driven on the road, the energy used for their manufacture and continual battery charges does. According to the Journal of Industrial Ecology, the manufacturing process for electric automobiles produces 30,000 pounds of carbon emissions versus only 14,000 pounds of such emissions for conventional automobile. This is due mostly to the production of lithium batteries, which are both resource and energy intensive.
There is also the practicality factor. The popular Nissan Leaf has only a 75 mile range per charge which is merely enough to get me to the Statehouse and back. In addition to being wary of the cars’ limited range, many consumers are also concerned about the higher price and logistics of battery-charging.
In his 2011 State of the Union address, President Obama predicted there will be one million EVs on the road by 2015, but at the present pace of EV sales, only 310,000 will be on U.S. roads by 2015. He champions electric automobiles as the transportation technology of the future. According to the Congressional Budget Office, by 2019 the federal government will have spent $7.5 billion to subsidize EVs. I am not convinced that this amount of taxpayer dollars spent on electric vehicles is the most economically and environmentally sound option.
I, personally, do not own an EV, but I am curious to learn more about their pros and cons and what their use would mean for Indiana and specifically for people here in Johnson County. I think it is important to consider all angles of this issue, and I look forward to hearing your thoughts. Please feel free to contact me anytime by phone at 317-232-9863 or via email at h58@iga.in.gov.
