Sales of electric vehicles (EVs) in the United States nearly doubled last year—and with consumer acceptance broadening, sticker prices dropping, new models on the way, and policy support growing, the outlook is even better for 2014.
In 2013, EVs increased their market share by 70 percent from 2012 levels, while all-vehicle sales grew 8 percent to reach a six-year high. Still, EV sales continue to lag forecasts made when these cars hit the market in late 2010, accounting for less than 1 percent of new light-duty vehicle sales. The strong growth in vehicle sales is mostly due to rising sales of gas-guzzling pickup trucks.
Optimism for EV market expansion is warranted, however, not only due to steady sales growth but also due to three key developments in 2013.
As early as this week, the federal government will announce what is likely the largest move ever to save oil. If last year’s proposal becomes final, as expected, the fuel economy of a typical new car will go up by more than 70 percent by 2025. The standards will improve how far cars and trucks travel on a gallon of gas even more than the original corporate average fuel economy (CAFE) standards, enacted by Congress in 1975.
The new passenger vehicle standards for fuel economy and greenhouse gas emissions are also the single largest move by the federal government to address climate change. Three critical factors made this possible: consumer commitment, technological progress, and smart public policy.
A Senate Transportation Committee hearing tomorrow will be the latest show of ire against the European Union’s effort to regulate greenhouse gas emissions from international aviation through its mandatory Emission Trading System (EU ETS). From Beijing to Delhi to Washington, governments claim the EU’s unilateral move violates international aviation law.
Indeed, in Washington, this is one of the rare issues these days where Democrats and Republicans find themselves on the same side opposing the EU’s action. The Obama Administration has weighed in with a strongly worded letter from Secretaries Clinton and LaHood urging the EU to drop its unilateral efforts and to work through the International Civil Aviation Organization (ICAO) to reduce aviation sector emissions.
But if tomorrow’s hearing before the Senate Transportation Committee is simply another round of EU-bashing, it will be a missed opportunity to focus on the one solution that virtually everybody (including the EU) appears to support—effective action by ICAO. Frustrated by years of inaction within ICAO, the real motivation behind the EU’s move may be to reignite efforts to reach agreement within ICAO.
While Americans bought nearly 18,000 PEVs last year, 2012 is the first full year when plug-in electric vehicles will be available nationwide. The long-term success of PEVs could bring some very real benefits to energy security, air quality, climate change, and economic growth.
It’s been over a year since we assembled the Plug-in Electric Vehicle (PEV) Dialogue to work on the major market barriers to PEVs nationwide. Yesterday, we released the first product of this diverse and important group – An Action Plan to Integrate Plug-in Electric Vehicles with the U.S. Electric Grid.
We’ve talked in the past about how policies like fuel economy standards and technologies like PEVs, fuel cells, and advanced internal combustion engines are the key to reducing oil consumption and the impact our travel has on our environment. PEVs could play an important role in that effort, but only if they’re given a fair shot.
|C2ES's Nick Nigro interviews PEV Dialogue members, Watson Collins of Northeast Utilities and Zoe Lipman of National Wildlife Federation, about the PEV Action Plan. Listen to the podcast now.|