{"id":327762,"date":"2024-05-11T08:28:33","date_gmt":"2024-05-11T06:28:33","guid":{"rendered":"https:\/\/climatescience.press\/?p=327762"},"modified":"2024-05-11T08:28:36","modified_gmt":"2024-05-11T06:28:36","slug":"evs-the-reckoning-begins","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=327762","title":{"rendered":"EVs: The Reckoning Begins"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From Watts Up With That?<\/a><\/p>\n\n\n\n

Roger Caiazza<\/p>\n\n\n\n

Irina Slav on energy Substack<\/a> is described as \u201cAll things energy. Challenging the dominant narrative because facts matter\u201d.   Her latest article \u201cPost Ridiculous\u201d<\/a> describes the possible last straw for EV adoption. <\/p>\n\n\n\n

Slav introduces her post with an extraordinary quote admitting that all is not right for EVs:<\/p>\n\n\n\n

\n

\u201cWe can\u2019t push EVs into the market against demand.\u201d Thus spoke<\/a> the head of Ford\u2019s European operations this week, commenting on the company\u2019s plans to start diverting ICE car deliveries from the UK to the continent. Why? Because the UK has EV sales goals and if carmakers don\u2019t align their business with these goals, they face substantial penalties.<\/p>\n\n\n\n

\u201cWe are not going to sell EVs at huge losses just to buy compliance. The only alternative is to take our shipments of [engine] vehicles to the UK down and sell these vehicles somewhere else,\u201d the brave man, by the name of Martin Sander, said, speaking at the FT\u2019s Future of the Car conference in London.<\/p>\n\n\n\n

https:\/\/www.ft.com\/content\/ff0f3966-0565-434b-81a7-9b2bb3c20e21<\/a><\/p>\n<\/blockquote>\n\n\n

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https:\/\/t.co\/CQbHSb1mv9<\/a><\/figcaption><\/figure>\n<\/div>\n\n\n

The Climate Industry narrative is different of course.  Despite that bit of reality in Great Britain it was reported<\/a> that \u201cSales of electric vehicles have got off to a record start this year, the latest sign that British consumers are shifting their preferences towards greener modes of transport<\/a>.\u201d    <\/p>\n\n\n\n

Back in the real world, Slav writes that \u201cBack in January, Bloomberg\u2019s Javier Blas published a column<\/a>, in which he sounded an alarm for governments willing to listen.\u201d    Slav posted an earlier article addressing the same problem: \u201cwhat governments are going to do about fuel duty income replacement if their EV plans panned out.\u201d<\/p>\n\n\n\n

She describes the Blas column<\/a>:<\/p>\n\n\n\n

\n

Blas detailed why governments needed to start thinking about a tax to replace their lost income from fuel duty collection because there was no time to waste \u2014 the EVs were coming and they were not paying any taxes while displacing a growing number of tax-generating internal combustion engine vehicles.<\/p>\n\n\n\n

Blas was his usual helpful, too, unlike me. He offered realistic options such as road use charges based on number of miles travelled every year or GPS tracking, which was the worse option for obvious reasons. While both these options have certain shortcomings, notably a regressive streak, they are both better than other alternatives such as car ownership charges or additions to income taxes.<\/p>\n\n\n\n

https:\/\/www.bloomberg.com\/opinion\/articles\/2024-01-29\/europe-s-grand-ev-ambitions-have-a-160-billion-tax-problem<\/a><\/p>\n<\/blockquote>\n\n\n\n

While those are realistic options, in my opinion it is yet another reason to avoid an EV.  Slav goes on to explain that governments have caught on to the problem and have started to tax EV drivers.  She writes:<\/p>\n\n\n\n

\n

\u201cIt is more like a penalty,\u201d a gentleman by the name of Jeff Shoffner, a Tennessee EV owner, told the FT for a story that came out this week. \u201cI\u2019m not averse to paying the extra fee, but I think it\u2019s too high.\u201d<\/p>\n\n\n\n

The comments were prompted by Tennessee\u2019s decision to double the state registration fee for EV owners from $100 to $200. Quite a hike, you might say. Whatever may have made such a radical increase necessary, you might wonder. Well, it\u2019s the same realisation that EVs have turned into cash-guzzlers and are giving nothing back \u2014 except the absence of tailpipe smoke. And that\u2019s not good enough for a frugal government.<\/p>\n\n\n\n

https:\/\/irinaslav.substack.com\/<\/a><\/p>\n<\/blockquote>\n\n\n\n

It turns out that  most states<\/a> are increasing registration fees to start to address this problem.  Slav documents similar actions in the United Kingdom, New Zealand, and Germany.  She points out that when the inevitable switch from incentives to taxes occurs then EV sales tank:<\/p>\n\n\n\n

\n

In case this sounds familiar, it\u2019s because Germany also scrapped<\/a> an EV incentive scheme because it ran out of money. Following this decision, EV sales in the country plummeted and that\u2019s not an overstatement. Sales of electric cars in January 2024 dropped<\/a> by 55% and kept falling.<\/a>https:\/\/irinaslav.substack.com\/<\/a><\/p>\n<\/blockquote>\n\n\n\n

There is one positive.  The virtue-signaling early EV adopters will be asked to pick up the slack.  Slav writes:<\/p>\n\n\n\n

\n

I leave you with the heartfelt words of one victim of governments\u2019 offensive against EV adopters. I would have paraphrased but tears choked me and made my hands shake, so a quote it is, from the FT.<\/p>\n\n\n\n

\u201c\u201cIt\u2019s discouraging. We were glad to be at the forefront with incentives and adoption rates\u2009.\u2009.\u2009.\u2009This particular thing with the registration fees seems to go against that,\u201d said Patrick McDevitt, a Tesla driver in New Jersey.\u201d<\/p>\n\n\n\n

I would admit that the above burst of sarcasm is too crude, even for me. But you see, we told them this would happen. We told them repeatedly. They didn\u2019t listen. So now they\u2019ll be joining the tax-paying drivers\u2019 club. Life\u2019s cruel.<\/p>\n\n\n\n

https:\/\/irinaslav.substack.com\/<\/a><\/p>\n<\/blockquote>\n\n\n\n

Conclusion<\/strong><\/p>\n\n\n\n

This is a fundamental issue for EVs.  The only way to get people to buy electric vehicles is to subsidize them but subsidizing them leads to tax losses elsewhere.  Slav concludes:<\/p>\n\n\n\n

\n

For the umpteenth time, then, we have our dear Western governments try to have their transition cake and eat it, too, and not gain a single ounce of extra weight. They wanted combustion engine cars out but forgot that these cars bring in billions in tax income. They wanted a fully electrified transport but forgot it wouldn\u2019t bring in money unless they make it more expensive. They wanted a revolution but forgot rule #1 for revolutions: the successful ones never start from the top. They start from the bottom.<\/p>\n\n\n\n

https:\/\/irinaslav.substack.com\/<\/a><\/p>\n<\/blockquote>\n\n\n\n

In my opinion that characterizes just about all the net-zero energy transition initiatives. <\/p>\n\n\n\n

\n\n\n\n

Roger Caiazza blogs on New York energy and environmental issues at\u00a0Pragmatic Environmentalist of New York<\/a>.\u00a0 This represents his opinion and not the opinion of any of his previous employers or any other company with which he has been associated.<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

This is a fundamental issue for EVs. The only way to get people to buy electric vehicles is to subsidize them but subsidizing them leads to tax losses elsewhere.<\/p>\n","protected":false},"author":121246920,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691821977,691828561,691818833,691828562],"class_list":["post-327762","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-electric-vehicles-evs","tag-ford-2","tag-great-britain","tag-slav-documents","has-post-thumbnail","fallback-thumbnail"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1ngu","jetpack-related-posts":[{"id":244972,"url":"https:\/\/climatescience.press\/?p=244972","url_meta":{"origin":327762,"position":0},"title":"Green Energy: Greatest Wealth Transfer to the Rich in History","author":"uwe.roland.gross","date":"02\/22\/2023","format":false,"excerpt":"We are in the midst of history\u2019s greatest wealth transfer. 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