The cost of EV’s – with subsidies and socialised costs - paid for by everyone else included

Interesting study from the Texas Public Policy Foundation:

2023-10-TrueCostofEVs-BennettIsaac.pdf (texaspolicy.com)

Overcharged Expectations: Unmasking the True Costs of Electric Vehicles Brent Bennett and Jason Isaac

20 pages, largely based on 2021 data so excludes the recent discounting to clear unsold EV’s. It excludes the tens of thousands of lives taken or shortened )including children) to mine the raw materials within EV batteries or the environmental costs of mining techniques used to extract raw materials.

Here’s an image of the world’s largest hard rock lithium mine that (hopefully) at least has strict labour safety and employment laws. What price for the damage caused to satisfy the demands of the advocates for EVs?

Greenbushes Mine, Greenbushes Tinfield, Bridgetown-Greenbushes Shire, Western Australia, Australia (mindat.org)

Here are a few extracts: from the Texas Public Policy Foundation.

Key Points

• The cost of producing electric vehicles (EVs) is far higher than  the prices they are being sold for. Nearly $22 billion in federal and state subsidies and regulatory credits suppressed the retail price of EVs in 2021 by an average of almost $50,000.

• Thanks to an unlawful multiplier, EVs receive nearly seven times more credits under federal fuel /efficiency programs than they provide in actual fuel economy benefits.

• Regulatory credits with bonus EV multipliers from federal fuel efficiency and greenhouse gas emissions standards and state EV sales mandates provide an average of $27,881 in benefits per vehicle for producers of EVs.

• Home and public charging stations used by EVs put a significant train on the electric grid, resulting in an average of $11,833 in socialized costs per EV over10 years, which are shouldered by utility ratepayers and taxpayers.

• Direct state and federal subsidies for EVs average $8,984 per vehicle over 10 years

“Adding the costs of the subsidies to the true cost of fueling an EV would equate to an EV owner paying $17.33 per gallon of gasoline.

And these estimates do not include the hundreds of billions more in subsidies in the Inflation Reduction Act (2022) for various aspects of the EV supply chain, particularly for battery manufacturing.

“.. t the federal government is subsidizing EVs to a greater degree than even wind and solar electricity generation and embarking on an unprecedented endeavor to remake the entire American auto industry.”

A couple of charts here:

Lots more detail in the report that has this structure:

Onwards

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