Overcoming Barriers to Deployment of Plug-in Electric Vehicles (2015) / Chapter Skim
Currently Skimming:
7 Incentives for the Deployment of Plug-in Electric Vehicles
7 Incentives for the Deployment of Plug-in Electric Vehicles
Pages 109-126
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 109... ...
.2 Cumulative cost duce the vehicle price. Because vehicle manufacturers and of ownership is distinct from total cost of ownership in that dealers are profit-oriented businesses, vehicle prices are it is a calculation for a given time horizon and typically does generally related to production costs.
|
From page 110... ...
After consideration of the $7,500 federal hicle leasing. tax credit, the adjusted MSRP for the Chevrolet Volt still sub stantially exceeds the MSRPs for the Chevrolet Cruze LS PRICE AND COST COMPETITIVENESS Automatic, the Toyota Prius, and the Volkswagen Passat and OF PLUG-IN ELECTRIC VEHICLES the average transaction price for the specialty small vehicle segment.
|
From page 111... ...
25,677 Incentives for the Deployment of Plug-in Electric Vehicles Midsize vehicles (specialty) 29,759 a All HEV and ICE vehicle models are ones with four-cylinder engines.
|
From page 112... ...
POSSIBILITIES FOR DECLINES IN PRODUCTION A second approach to assessing the price-competitive- COSTS FOR PLUG-IN ELECTRIC VEHICLES ness of PEVs is to evaluate data on sales volumes. The idea is that low sales volume could indicate that the vehicles are The extent to which PEVs are adopted over time will denot price- or cost-competitive, although the analysis above pend on reductions in their production costs, on the policies indicates that the Nissan Leaf is highly competitive given that governments implement to promote PEV deployment, the federal tax credit.
|
From page 113... ...
Such optimis- ity of which might also influence people's willingness to purtic reductions in production costs would provide opportuni- chase PEVs. ties for the vehicle manufacturers to reduce the MSRPs for PEVs by amounts that largely offset, or more than offset, the Manufacturer Incentives and Regulatory Requirements effects of the pending expiration of the current program of federal tax credits.
|
From page 114... ...
tric MPGe and gasoline mpg must be weighted to obtain the under the Clean Air Act and fuel economy is regulated by fuel economy value used in CAFE compliance. Until 2019, the National Highway Traffic and Safety Administration PHEVs are assumed to use electric fuel 50 percent of the time (NHTSA)
|
From page 115... ...
The incentives, therefore, create an internal cross sub- ed the California ZEV program as authorized under Section sidy that allows a manufacturer to reduce the cost of com- 177 of the Clean Air Act as part of their plans to meet federal pliance for their gasoline-vehicle fleet by producing PEVs. ambient air quality standards.
|
From page 116... ...
For ments have also offered discounted or free PEV charging or parking. States have also provided financial incentives for 12 The federal tax credit is $2,500 for PEVs that have battery ca- installing PEV charging stations so that consumers will be pacities below 5 kWh.
|
From page 117... ...
Tax deductions are often subject to rules that limit the amounts that can be deducted or that restrict higher-income taxpayers from taking the full deduction. As financial incentives, many tax credits are available to all persons who file a tax return whereas tax deductions are available only to those persons who file a tax return that itemizes deductions.
|
From page 118... ...
, U.K. Discounted or free PEV charging United States: Arizona, California, Delaware, Georgia, Illinois, Indiana, Kentucky, Maryland, Michigan, Minnesota, Nevada, Virginia Other countries: Japan, Norway Discounted or free PEV parking United States: Free parking available at some airports, such as Long Beach Airport; at parking garages in some states and localities, such as Nevada, Sacramento, and Santa Monica; and other locations, often with free charging Other countries: Denmark, Iceland, Norway PEV Infrastructure Incentives -- one-time financial benefit for deploying PEV charging stations Tax credit or rebate for installing PEV charging station United States (individual and business)
|
From page 119... ...
However, a greater body of evidence now exists re- PRICE OF CONVENTIONAL garding fiscal incentives and HEVs. Overall, that literature TRANSPORTATION FUELS AS AN suggests that financial incentives do motivate consumers INCENTIVE OR A DISINCENTIVE FOR THE to purchase more fuel-efficient vehicles (see, for example, ADOPTION OF PLUG-IN ELECTRIC VEHICLES Huang 2010; Sallee 2011; Ozaki and Sevastyanova 2011)
|
From page 120... ...
gasoline prices. NOTE: HEV, hybrid electric vehicle; PEV, plug-in electric vehicle.
|
From page 121... ...
. of 1988, the Clean Air Act of 1990, the Energy Policy Act of 1992, the California ZEV program (originally adopted in Methanol 1990)
|
From page 122... ...
. Compressed Natural Gas Hybrid Electric Vehicles Another alternative-vehicle system that garnered inter- In 1999, HEVs were introduced into the U.S.
|
From page 123... ...
However, on the basis of its review of the barriers to The tax credits were available for the first 60,000 vehicles PEV adoption and current and past federal and state incensold by a manufacturer, after which time the tax credits would tive programs, the committee offers the following recomexpire. In addition to the federal income tax credits, states of- mendations: fered a wide array of other consumer incentives, including income tax credits, sales-tax reductions or exemptions, access Recommendation: Federal financial incentives to purchase to high-occupancy-vehicle (HOV)
|
From page 124... ...
hybrid-electric vehicles: Evidence from US states. En- Evidence from the U.S.
|
From page 125... ...
: 874-889. nologies: Plug-in Hybrid Electric Vehicles.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.