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Old 08-08-2021, 03:49 AM   #1
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WSJ op ed on EV subsidies

Following is an interesting Wall Street Journal article on electric vehicle subsidies: https://www.wsj.com/articles/the-ele...is-11628201680
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Old 08-08-2021, 04:36 AM   #2
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Old 08-08-2021, 08:11 AM   #3
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My apologies. The linked article is not viewable in its entirety unless you have a subscription. FYI, the article shows how the prices of ICE vehicles are being forced to rise in order that EVs will become more competitive in comparison. The mechanism as to how this will be achieved is through the CAFE (Corporate Average Fuel Economy) credit system. Essentially, if you buy a car that gets less than a certain MPG (52 MPG in 2026) you will be contributing towards an EV purchase by another customer.
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Old 08-08-2021, 08:11 AM   #4
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https://www.casteyanqui.com/ev/subsidies/index.html
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Old 08-08-2021, 08:37 AM   #5
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Quote:
Originally Posted by move on View Post
My apologies. The linked article is not viewable in its entirety unless you have a subscription. FYI, the article shows how the prices of ICE vehicles are being forced to rise in order that EVs will become more competitive in comparison. The mechanism as to how this will be achieved is through the CAFE (Corporate Average Fuel Economy) credit system. Essentially, if you buy a car that gets less than a certain MPG (52 MPG in 2026) you will be contributing towards an EV purchase by another customer.

Hmmm....this article says that value equity is achieved through tax credits for the EV, lowering the price to that equal to the ICE vehicle, not the other way 'round as you've described. https://www.marketwatch.com/story/fr...es-11628187632

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Bidenís proposal to include $100 billion in new electric-car subsidies has been dropped from the pending infrastructure bill, but an existing federal-tax incentive remains. The savings do not come off the initial price of the car, no matter how car sellers may market this incentive that way. Buyers can claim up to $7,500 in credit against the federal income taxes owed in the year in which the car is purchased, lowering their federal tax liability.
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Old 08-08-2021, 08:49 AM   #6
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Hmmm....this article says that value equity is achieved through tax credits for the EV, lowering the price to that equal to the ICE vehicle, not the other way 'round as you've described. https://www.marketwatch.com/story/fr...es-11628187632
Yes. The tax credit for EVs remains, in addition to the CAFE credits. The tax credit is not enough by itself to get people to buy EVs.
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