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It's a set amount money set aside to jump-start the market. The subsidies will end when the fund runs out and pure (if there is such a thing) market forces take
by satya71 9y ago
It's a set amount money set aside to jump-start the market. The subsidies will end when the fund runs out and pure (if there is such a thing) market forces take over. Fossil fuels are subsidized permanently, however.
- greglindahl 9y ago"pure market forces" won't take over until the negative externality of pollution is properly priced.
- rebuilder 9y agoMarket forces alone will never fully price in pollution, IMO. There's no incentive to do so without regulation, and even if there were, I don't see how price discovery would work. The environment is not a market participant, unfortunately. Anyway, this is pretty far off the original question of why EVs are being subsidized via tax rebates in the US.