Subsidies for electric cars expensive and ineffective

Paterniano Del Favero
Giugno 23, 2017

Subsidizing the purchase of electric cars in Canada is an inefficient way to reduce greenhouse gas emissions that is not cost effective, according to a Montreal Economic Institute study released Thursday.

The government of Quebec has set a goal of having one million electric and hybrid vehicles on its roads by 2030, up from 6,000 now.

Quebec provides a subsidy of $8,000 for the purchase of a new electric or rechargeable hybrid vehicle, and Ontario for its part provides a subsidy of up to $14,000.

That means the Ontario subsidy is costing as much as 523 a tonne, compared with the federal carbon price plan, which will hit 50 dollars by 2022.

In comparison, the same goal of reducing GHGs costs around $18 through the existing carbon market, which groups together California, Quebec, and soon Ontario.

"Between the different incentive measures that produce the same results, the most expensive option should never be favoured", emphasizes Germain Belzile.

Watch as I show you what else this study concludes regarding the impact of having up to a million EVs on our roads, and the fact that the government subsidies are greatest for our most affluent citizens who buy high end Tesla's and other EV's that 99 per cent of us can't afford.

Download the Economic Note "Are electric vehicle subsidies efficient?" below. Subsidies for the purchase of electric vehicles not only have little effect on GHG emissions, but they also cost taxpayers a lot of money. "Common sense, both economically and ecologically speaking, argues in favour of reducing these subsidies, and even eliminating them", concludes Mark Milke. This publication is available on our website.

For further information: Interview requests: Pascale Déry, Vice President, Communications, Development and External Affairs, MEI / Tel.: 514-273-0969 ext.

Altre relazioni OverNewsmagazine

Discuti questo articolo