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Your long term part is quite inflationary as well. If it wouldn’t be more expensive everybody would already driving evs

toomuchtodo 5y ago
EVs cost half the cost per mile as an internal combustion vehicle [1], even less as renewables generation increases driving down the price of power. EVs do have a higher upfront cost, but lower total cost of ownership. Issue green bonds to subsidize the capital cost for borrowers, and increase the tax on internal combustion vehicles sales. EV supply is currently manufacturing constrained; provide incentives to rapidly scale EV and battery manufacturing. [1] https://www.energy.gov/eere/vehicles/articles/fotw-1190-june-14-2021-battery-electric-vehicles-have-lower-scheduled https://www.energy.gov/eere/vehicles/articles/fotw-1190-june...
- throwawaygh 5y ago
  > EVs do have a higher upfront cost For now. Because they are new. But there's every reason to believe this is temporary. Electric cars are way simpler to manufacture. Far fewer moving parts. Literally.
  - toomuchtodo 5y ago
    Right, you use the green bonds financing to negate the EV/ICE price delta and capital carrying cost of that price delta until manufacturing learning curve reaches the point where the financial engineering isn't necessary.
  - tonyedgecombe 5y ago
    I suspect it's going to be quite a while before they reach price parity. Even with the current high capital costs supply isn't matching demand. We have to build a lot of battery factories and that isn't going to happen overnight.
throwawaygh 5y ago
I don't follow. It's already WAY cheaper to drive EVs over the life of the vehicle. The amortization schedule is different, for now. In the long run that will change: manufacturing EVs is way cheaper and simpler than ICE cars. By 2024 every major car manufacturer will have a solid lineup of EVs and mega manufacturing capacity. EV Corollas will be the normal lowest-end car purchase by 2030, and with a tiny fraction of the operating costs.

EVs cost half the cost per mile as an internal combustion vehicle [1], even less as renewables generation increases driving down the price of power. EVs do have a higher upfront cost, but lower total cost of ownership. Issue green bonds to subsidize the capital cost for borrowers, and increase the tax on internal combustion vehicles sales. EV supply is currently manufacturing constrained; provide incentives to rapidly scale EV and battery manufacturing. [1] https://www.energy.gov/eere/vehicles/articles/fotw-1190-june-14-2021-battery-electric-vehicles-have-lower-scheduled https://www.energy.gov/eere/vehicles/articles/fotw-1190-june...

throwawaygh 5y ago
> EVs do have a higher upfront cost For now. Because they are new. But there's every reason to believe this is temporary. Electric cars are way simpler to manufacture. Far fewer moving parts. Literally.
- toomuchtodo 5y ago
  Right, you use the green bonds financing to negate the EV/ICE price delta and capital carrying cost of that price delta until manufacturing learning curve reaches the point where the financial engineering isn't necessary.
- tonyedgecombe 5y ago
  I suspect it's going to be quite a while before they reach price parity. Even with the current high capital costs supply isn't matching demand. We have to build a lot of battery factories and that isn't going to happen overnight.

throwawaygh 5y ago

I don't follow. It's already WAY cheaper to drive EVs over the life of the vehicle. The amortization schedule is different, for now. In the long run that will change: manufacturing EVs is way cheaper and simpler than ICE cars. By 2024 every major car manufacturer will have a solid lineup of EVs and mega manufacturing capacity. EV Corollas will be the normal lowest-end car purchase by 2030, and with a tiny fraction of the operating costs.