Subsidies or Surcharges?

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In order to accelerate demand for electric vehicles (EVs), the world’s governments have been handing out a wide range of subsidies and incentives.  But in nearly half of U.S. states, driving a battery-powered car now requires paying an additional fee. To date, 24 states have imposed special fees on EVs, usually through higher registration charges, … Continued

Subsidy Risk

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Dependence on subsidies entails significant, and potentially existential, risk factors.  A case can be made in favor of subsidizing new technology, for limited periods, in order to mitigate early, low volume related costs, as potential participants seek to reach critical mass.  However, subsidies are generally of limited duration, as the long term costs are not … Continued

To Subsidize or Not To Subsidize, That is the Question

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German Chancellor Angela Merkel recently said that subsidies designed to help Germans buy electric vehicles cannot go on forever. California will hold hearings on offering a $4,500 subsidy for each electric vehicle sold in the state, up from the current $2,500, even as customers from Tesla and GM face losing the loss of bigger federal … Continued