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Andrew Currall's avatar

I suspect a large part of Americans slow adoption of EVs is simply that fuel is so cheap in the US. Anywhere else, electric cars are dramatically cheaper to run; I'm not sure this is so true in the US. In the UK we pay huge (>100%) fuel duty on petrol or diesel; electricity is subject only to a 5% VAT rate. And the untaxed resource cost of fuel is lower in the US to start with, of course.

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Scott Pepper's avatar

I'm a fairly well-off plug-in hybrid owner (3 yrs), living in blue states for 60+ years. Certainly I'm aware of anecdotes about contrarians in red states purposely blocking access to chargers, etc. But anecdotes often steal the lede from baser motivations: the wallet. (I think Texas is a prime example of this; massive adoption of solar/wind power while maintaining a "redder" attitude.) Anyway, I risk giving too much credence to my own story, but I think it's obviously true for many. many people. (a) the gas-powered version of my car was ~ 10k cheaper. (b) I was able to recoup almost all of this differential through US and (blue)state tax credits. But (c) the 7.5k was via tax credits, which means I had to OWE 7500 in US income tax to get 7500 back. I'm retired, so my solution was to move ~$45 k from a retirement (tax-deferred) account to my savings account; aka "income". So that I could be taxed $7500 at the end of the year. So that I could get a tax rebate of $7500. The Europeans among you may be surprised to learn that, for a couple, the first ~30k of income is tax-free (standard deduction), and the next ~$60k is taxed at ~11%. In other words, you have to have an income of over $100k to owe $7500 in taxes, and less than that means less rebate. I would bet a lot of money on the proposition that (US) people of any political persuasion would adopt EVs in far greater numbers if the price difference of the 2 models (gas and EV) were made equal in another way. Less maintenance = less cost, so EV's are a savings even at equal prices. As others have said, gas is cheap in the US, and politically it's easy to rationalize staying with gas. (I just want to add that the current administration tightened the rules on the tax credit essentially to domestically-produced vehicles, so the millions that might have bought a plugin hybrid Toyota were left with fewer options, which drives down adoption rates.)

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