{"id":350002,"date":"2024-11-03T09:47:44","date_gmt":"2024-11-03T08:47:44","guid":{"rendered":"https:\/\/climatescience.press\/?p=350002"},"modified":"2024-11-03T09:47:46","modified_gmt":"2024-11-03T08:47:46","slug":"electric-vehicles-a-tale-of-woe-in-the-absence-of-the-market-process","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=350002","title":{"rendered":"Electric Vehicles: A Tale of Woe in the Absence of the Market Process"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

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

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

By Timothy G. Nash<\/a>Jason Hayes<\/a>Tom Rastin<\/a><\/p>\n\n\n\n

Introduction<\/strong><\/p>\n\n\n\n

You don\u2019t need a government agent to tell you what you want or when you want it.<\/p>\n\n\n\n

Milton Friedman<\/a> explained that \u201cmarket processes\u201d allow individuals to interact and exchange goods and services voluntarily. The prices they charge in these exchanges guide production and consumption decisions, ultimately leading to the most efficient resource allocations, maximized customer satisfaction, and increased purchasing power, and this all occurs with minimal need for government interference.<\/p>\n\n\n\n

When it comes to electric vehicles, the absence of a \u201cmarket process\u201d has ignored consumers\u2019 wants and needs and allowed consumer demand to be misinterpreted. Demand exists only when a consumer needs and\/or wants a product and can afford it. However, when government mandates and subsidies push EVs instead of more desirable vehicles, we can\u2019t tell if manufacturers are producing the optimal number of electric vehicles.<\/p>\n\n\n\n

With the national debt ready to exceed $36 trillion, we know the federal government cannot continue spending recklessly. Whoever occupies the White House next will need to cut spending dramatically. We suggest they start by eliminating electric vehicle subsidies for producers and consumers.<\/p>\n\n\n\n

Markets are sending strong negative signals on electric vehicles as American consumers are increasingly hesitant to purchase them. Government policies are, therefore, wasting tens of billions of dollars<\/a>\u2014soon, hundreds of billions or more\u2014forcing this immature technology into a market where consumers are not ready to purchase.<\/p>\n\n\n\n

 Americans have many reasons to pause before purchasing an electric vehicle.<\/p>\n\n\n\n

    \n
  1. Consumer Confidence<\/strong><\/li>\n<\/ol>\n\n\n\n

    A recent Gallup survey<\/a> showed that only 7% of Americans owned an EV. A further 9% were seriously considering a purchase, 35% reported they would consider buying an EV, and 49% were not interested in an EV (this includes 1% who had no opinion). This survey revealed an 11% decline in customer demand for EVs since 2023. The Gallup polling compounded the fact that most EV owners own at least one additional internal combustion engine vehicle<\/a>. According to Edmunds<\/a>, 40% of all electric vehicle trade-ins<\/a> were used as down payments to purchase an ICE vehicle in the second quarter of 2024.<\/p>\n\n\n\n

      \n
    1. Purchase Costs<\/strong><\/li>\n<\/ol>\n\n\n\n

      Edmunds also reported that, in the first quarter of 2024, there was still a 42% gap between the average price<\/a> of an electric and gasoline-powered car. That gap expands to 58.5% in the popular and relatively crowded SUV category. A compact electric SUV costs $53,048, while the equivalent ICE competitor\u2019s manufacturers-suggested retail pricing is $35,722. The smallest gap in MSRP was 18% in the large pick-up truck sector, where EV pick-ups average $76,475.<\/p>\n\n\n\n

        \n
      1. Range Anxiety<\/strong><\/li>\n<\/ol>\n\n\n\n

        Range Anxiety<\/a> is the fear of running out of battery power before reaching a destination due to limited battery range or insufficient charging infrastructure. Other factors<\/a> influencing range anxiety include knowledge of charging locations, charging times, battery degradation, and changes in performance relative to weather conditions.<\/p>\n\n\n\n

          \n
        1. Grid Capacity<\/strong><\/li>\n<\/ol>\n\n\n\n

          EVs will strain an already overworked grid<\/a>. Fleet charging requirements for larger batteries in delivery trucks and public transportation will compound this strain. Utilities will need to manage the complex timing and location of new EV charging infrastructure. Those complexities will be compounded by rushed transition timelines, like the Biden administration\u2019s goal of EVs making up 67% of all new automobile sales<\/a> in America by 2032. That burden will be compounded by the demand for electric power to supply AI, Bitcoin exchanges, and data centers.<\/p>\n\n\n\n

            \n
          1. Safety concerns and weather conditions<\/strong><\/li>\n<\/ol>\n\n\n\n

            Major safety concerns<\/a> for EVs orbit around the potential for increased damages during crashes caused by the increased weight of EVs over ICE vehicles. Additional concerns exist over the changing nature of vehicle fires<\/a> associated with lithium-ion batteries<\/a>. Fires can be sparked by defects in the battery system, causing flammable and toxic gases to be released, damage to the battery system from a crash, or exposure to salt water due to floods or hurricanes. Electric vehicles tend to perform inconsistently, especially in climates with a wide range of temperatures (extreme heat or cold<\/a>).<\/p>\n\n\n\n

              \n
            1. Resale and\/or trade-in value of EVs<\/strong><\/li>\n<\/ol>\n\n\n\n

              The average American automobile, light truck or SUV, is 12.6 years<\/a> old and rising, meaning the business for the U.S. aftermarket looks rosy. But, the prospect of purchasing a used EV causes concerns for many consumers. In 2024, electric vehicles are depreciating<\/a> faster than ICE vehicles, and the ability to find a good service center to handle the list of growing maintenance needs is becoming more evident and costly. Finally, the realization that at trade-in<\/a>, or the end of the useful life of an electric vehicle, its value could be negative. The notion of owning something that may have negative value is not endearing<\/a> when considering a purchase.<\/p>\n\n\n\n

                \n
              1. Rental car companies around the world are sending a signal on EVs<\/strong><\/li>\n<\/ol>\n\n\n\n

                Over the past few years, many rental car<\/a> users have pushed back on driving an EV, forcing European and U.S. companies to reduce their EV fleets. These companies<\/a> report high repair costs, poor resale value, lack of customer charging centers, and the learning curve it takes to educate first-time users.<\/p>\n\n\n\n

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

                This list of reasons why consumers are hesitant about EVs is not exhaustive, but it does provide some clear reasons that companies and government regulators are moderating strategies to transition. Without government mandates and subsidies, it is highly unlikely that even 50% of consumers would choose an EV by the government\u2019s arbitrary date of 2032.<\/p>\n\n\n\n

                There is a market for electric vehicles, but government mandates and subsidies\u2014regulators predicting winners and losers\u2014cause more harm than good. By forcing technology into widespread use before it is ready for primetime, governments are causing consumers to resist EVs. Instead, government regulators should allow consumer demand, competition, and the \u201cmarket process\u201d to guide EV adoption.<\/p>\n\n\n\n

                Dr. Timothy G. Nash is director of the McNair Center at Northwood University. <\/em><\/p>\n\n\n\n

                Mr. Jason Hayes is director of Environmental Policy at the Mackinac Center<\/a>.<\/em><\/p>\n\n\n\n

                Dr. Tom Rastin is a retired business executive from Ohio.<\/em><\/p>\n\n\n\n

                This article was originally published by RealClearEnergy and made available via RealClearWire.<\/strong><\/p>\n\n\n\n

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

                You don\u2019t need a government agent to tell you what you want or when you want it.<\/p>\n

                Milton Friedman explained that \u201cmarket processes\u201d allow individuals to interact and exchange goods and services voluntarily. The prices they charge in these exchanges guide production and consumption decisions, ultimately leading to the most efficient resource allocations, maximized customer satisfaction, and increased purchasing power, and this all occurs with minimal need for government interference.<\/p>\n","protected":false},"author":121246920,"featured_media":350004,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","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_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":[691831291,691828406,691831293,691831290,691831292,691822646],"class_list":{"0":"post-350002","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-consumer-confidence","9":"tag-electric-vehicles-evs-2","10":"tag-grid-capacity","11":"tag-milton-friedman","12":"tag-purchase-costs","13":"tag-range-anxiety","15":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/11\/0AdobeStock_377905344-2048x1536-1.jpeg?fit=2048%2C1536&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1t3c","jetpack-related-posts":[{"id":224041,"url":"https:\/\/climatescience.press\/?p=224041","url_meta":{"origin":350002,"position":0},"title":"Green Vehicle Entrepreneur Convicted of Securities and Wire Fraud","author":"uwe.roland.gross","date":"15\/10\/2022","format":false,"excerpt":"Trevor Milton, founder of Nikola, who claimed to have developed prototype hydrogen and electric vehicles, has been convicted of deceiving investors.","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/10\/image-736.png?fit=800%2C400&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/10\/image-736.png?fit=800%2C400&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/10\/image-736.png?fit=800%2C400&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/10\/image-736.png?fit=800%2C400&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":281537,"url":"https:\/\/climatescience.press\/?p=281537","url_meta":{"origin":350002,"position":1},"title":"Julian Simon Memorial Award 2023: Comments of David Simon","author":"uwe.roland.gross","date":"02\/10\/2023","format":false,"excerpt":"\u00a0From \u00a0Master Resource By David Simon This past February marked 25 years since my father\u2019s death.\u00a0 In 2001, CEI began awarding the\u00a0Julian Simon Memorial Award.\u00a0My family deeply appreciates not only that CEI established this award, but also that CEI now has continued this award for 23 years. The first award\u2026","rel":"","context":"In \"Climate Emergency\"","block_context":{"text":"Climate Emergency","link":"https:\/\/climatescience.press\/?tag=climate-emergency"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00GN8go56V-1200x628-1.jpg?fit=1200%2C628&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00GN8go56V-1200x628-1.jpg?fit=1200%2C628&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00GN8go56V-1200x628-1.jpg?fit=1200%2C628&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00GN8go56V-1200x628-1.jpg?fit=1200%2C628&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00GN8go56V-1200x628-1.jpg?fit=1200%2C628&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":283577,"url":"https:\/\/climatescience.press\/?p=283577","url_meta":{"origin":350002,"position":2},"title":"The climate war on travel","author":"uwe.roland.gross","date":"16\/10\/2023","format":false,"excerpt":"Airplane, jumbojet on runway preparing for takeoff at sunset at the airport Don\u00b4t travel and eat bugs. Welcome to a brave new world. From \u00a0CFACT By\u00a0Craig Rucker Team warming doesn\u2019t just want you to drive a tiny vehicle with more MPG, switch to an EV, or take public transit.\u00a0 They\u2026","rel":"","context":"In \"French government\"","block_context":{"text":"French government","link":"https:\/\/climatescience.press\/?tag=french-government"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00istock-sunset_at_airport_539271533_1200_x_630.jpg?fit=1200%2C630&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00istock-sunset_at_airport_539271533_1200_x_630.jpg?fit=1200%2C630&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00istock-sunset_at_airport_539271533_1200_x_630.jpg?fit=1200%2C630&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00istock-sunset_at_airport_539271533_1200_x_630.jpg?fit=1200%2C630&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/10\/00istock-sunset_at_airport_539271533_1200_x_630.jpg?fit=1200%2C630&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":292768,"url":"https:\/\/climatescience.press\/?p=292768","url_meta":{"origin":350002,"position":3},"title":"\u2018Zero Emission\u2019 Truck Fraud: Candid Camera Meets Nikola (Trevon Milton to the Slammer?)","author":"uwe.roland.gross","date":"27\/12\/2023","format":false,"excerpt":"A classic Candid Camera episode is where\u00a0a car without a motor\u00a0makes a downhill stop at a service station for a checkup. The attendants are stunned to find the car is engineless.","rel":"","context":"In \"E-truck\"","block_context":{"text":"E-truck","link":"https:\/\/climatescience.press\/?tag=e-truck"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/0nikola-main_0.jpg?fit=1200%2C670&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/0nikola-main_0.jpg?fit=1200%2C670&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/0nikola-main_0.jpg?fit=1200%2C670&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/0nikola-main_0.jpg?fit=1200%2C670&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/12\/0nikola-main_0.jpg?fit=1200%2C670&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":336117,"url":"https:\/\/climatescience.press\/?p=336117","url_meta":{"origin":350002,"position":4},"title":"A Permanent Subsidy? Nuclear Power\u2019s Price-Anderson Act (5 Extensions, 89 years)","author":"uwe.roland.gross","date":"11\/07\/2024","format":false,"excerpt":"\u201cThe infant industry argument is a smoke screen,\u201d wrote Milton and Rose Friedman in their 1979 classic, Free to Choose. \u201cThe so-called infants never grow up.\u201d And several years later, the two wrote: \u201cNothing is so permanent as a temporary government program.\u201d","rel":"","context":"In \"Industrial Wind Power\"","block_context":{"text":"Industrial Wind Power","link":"https:\/\/climatescience.press\/?tag=industrial-wind-power"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/07\/0Nuclear-Power-Plant-at-night-ratio-2.jpg?fit=1200%2C683&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/07\/0Nuclear-Power-Plant-at-night-ratio-2.jpg?fit=1200%2C683&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/07\/0Nuclear-Power-Plant-at-night-ratio-2.jpg?fit=1200%2C683&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/07\/0Nuclear-Power-Plant-at-night-ratio-2.jpg?fit=1200%2C683&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/07\/0Nuclear-Power-Plant-at-night-ratio-2.jpg?fit=1200%2C683&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":331593,"url":"https:\/\/climatescience.press\/?p=331593","url_meta":{"origin":350002,"position":5},"title":"Permanent Tax Subsidy? Solar\u2019s 15 extensions","author":"uwe.roland.gross","date":"05\/06\/2024","format":false,"excerpt":"From 1978 to the present (46 years), 15 extensions belie the industry\u2019s age-old claims of almost being competitive. Remember the New York Times\u2019 declaration in 1994 (per Enron) that solar was \u201ccompetitive\u201d with fossil fuels? Remember Solyndra? Joe Romm in 2011: \u201cIt is clear that solar and wind are competitive\u2026","rel":"","context":"In \"Investment Tax Credit (ITC)\"","block_context":{"text":"Investment Tax Credit (ITC)","link":"https:\/\/climatescience.press\/?tag=investment-tax-credit-itc"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/06\/020200721_155348_0000-1.webp?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/06\/020200721_155348_0000-1.webp?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/06\/020200721_155348_0000-1.webp?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/06\/020200721_155348_0000-1.webp?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/06\/020200721_155348_0000-1.webp?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/350002","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/users\/121246920"}],"replies":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=350002"}],"version-history":[{"count":2,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/350002\/revisions"}],"predecessor-version":[{"id":350005,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/posts\/350002\/revisions\/350005"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=\/wp\/v2\/media\/350004"}],"wp:attachment":[{"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=350002"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=350002"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/climatescience.press\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=350002"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}