A Critical Evaluation of Electric Vehicle Benefits

This paper investigates electric vehicle benefits and costs. Similar analysis could be applied to other alternative fuels. This study evaluates various types of electric vehicles. “Conventional performance” electric cars are intended to substitute for petroleum powered vehicles. However, for the foreseeable future they will fail to do this; electric vehicles offer significantly less performance and have higher prices. As a result, they will not be widely purchased without significant subsidies, and once purchased the amount of petroleum vehicle travel they displace is likely to be low. Neighborhood vehicles are low performace cars designed for short, relatively low speed travel. They can be battery-electric powered, or use other alternative fuels. They reduce a number of costs, including externalities and consumer costs, and they can make driving more affordable to some people who cannot otherwise drive. However, such vehicles cannot simply substitute for petroleum automobiles. Instead, they will need to be part of a more diverse and efficient transport system which offers travelers more choices and the incentive to use each option for what it does best. Neighborhood electric vehicles could provide mobility within a local area; travelers would shift to regional transit services or rent a petroleum powered vehicle when they needed greater speed, power or capacity. This analysis indicates that conventional electric vehicle benefits are modest compared with the full costs of motor vehicle travel. Although they reduce air pollution and some energy externalities, they do not reduce other motor vehicle external costs, increase travel choices for non-drivers, or provide user savings. Local air pollution reduction benefits of electric cars may justify their use in areas with high air pollution costs. Far greater social benefits may be achieved by the broad use of neighborhood vehicles in conjunction with other reforms that increase travel choices and encourage more efficient transportation. Critical Evaluation of Electric Vehicle Benefits