The newest ZEVs (Zero Emission Vehicles) are impressive technologically. But there is no economic basis for the billions of dollars spent subsidizing their adoption. The entire premise for subsidizing ZEVs and the infrastructure needed to power them—reduced air pollution and lower CO2 emissions—is flawed.
The simple fact is that, because of stringent emissions standards and low-sulfur gasoline, new ICVs (Internal Combustion Vehicles) today emit very little pollution, and they will emit even less in the future. Compared with new ICVs, ZEVs charged with the forecast mix of electric generation will emit more criteria air pollutants—SO2, NOx, and particulates—not less. And although ZEVs will emit less CO2 than ICVs, the projected reduction in CO2 emissions, below 1 percent of total forecast U.S. CO2 emissions, will have no measurable impact on climate and, hence, no economic value.
ZEV subsidies also impose disproportionate costs on lower-income consumers to benefit higher-income ones. Historically, ZEV purchasers have had much higher household incomes than average. Moreover, ZEV purchasers are primarily homeowners, who benefit not only from subsidies to purchase their vehicles but also from subsidies to install charging and solar [photovoltaic] (PV) systems.
ZEV purchasers who install behind-the-meter solar PV reap additional subsidies by not paying the full costs of providing them with backup power, not paying the full costs for upgrading local electric utility distribution systems to support their ZEVs, and not paying the full costs of utility-owned public charging stations that they can use. ...
The bottom line is that the economic and environmental rationales for subsidizing ZEVs do not withstand scrutiny. These subsidies, along with mandates for ZEV adoption, should be eliminated.
