In 2015, more than half a million of electric cars were sold in the world, with the help of nearly EUR 4 billions of public funds (1). States support electric cars purchase with an average of €8.600 for a battery car and about €4.700 for a plug-in hybrid (2). There is a difference between countries. State and local subsidies amount €15.000 in Seoul where as in India you can expect €2.000. Germany was long a exception, refusing to subside electric cars, until May 2016 when the government budgeted €600 millions for purchase subsidies (3).
In addition to purchase incentives can be added loss of income on diesel and gasoline taxes, that can be slightly compensated with a rise of taxes on electricity. But States tax more fuel than electricity so in 2015 this shortfall represents €113 millions on fuel taxes. In the same time electricity taxes rose by €50 millions.
Electric car carbon footprint is not always better than thermic cars, especially in China and the US, where 60% of electric cars were sold in 2015 (4). China spent in 2015 almost €1.7 billion to encourage electric cars purchase, even though those vehicles produced more than thermic cars adding some 250 000 tons of CO2e (5). The US spent about € 700 million.
But electric cars reduce GHG emissions in many countries, even if at impressive costs. For example, the UK spent nearly €350.000 in public subsidies in electric cars to reduce one ton of CO2e. If political goal is really to reduce GHG emissions in transport, public money should be spent first to support public transportation, soft mobility and renewable energies.
Notes & references
(1) Estimation from International Energy Agency’s data : https://www.iea.org/publications/freepublications/publication/Global_EV_Outlook_2016.pdf
(2) Policy supports can take different forms : exemption from taxes (acquisition, registration or circulation), which are the most common, purchase incentives (in France or UK) or tax credit (in the US). States also support investments in charging stations.
(3) State subside is supplemented by the same amount from car manufacturers. So total of €1,2 billion.
https://www.theguardian.com/world/2016/apr/28/germany-subsidy-boost-electric-car-sales
(4) See previous posts for more details about electric car carbon footprint.
(5) In comparison of what would have emitted the same number of thermic cars.
