Is Political Change the Answer to Electric Car Innovation?

Electric vehicles are, in all likelihood, the future of commercial and private transportation. Nations like China, India, Britain, and France have all declared their intentions to phase out the production of traditional vehicles in favor of electric alternatives. But with many economies relying on the production of gas-powered cars for success, is political change the best answer to innovating the electric car?

Widespread governmental bans on combustion engines could cost more than 600,000 jobs in Germany alone. However, the need to reduce greenhouse gas emissions is only increasing along with the prevalence of climate crises. 

At the same time, electric cars are commonly available only at price points out of range for many lower-income families. Innovation is necessary to make these vehicles affordable and usable enough for the majority. But is political change the best way to go about this? Let’s explore the details. 

How political change impacts the electric car industry

Political change may be one of the most significant factors in the innovation and disruption of the electric vehicle industry. Because of any government’s unique position to place a thumb on the scale of manufacturing to incentivize or discourage the economic growth of any particular product, the electric car market can be essentially made or broken by political intervention.

For example, a government can create all kinds of tax cuts and rebates for incentivizing the production of electric vehicles. This can result in cheaper production of these vehicles and a competing disadvantage in the gas-powered market. Shifts in the commonality of products can take place in this fashion, complete with a series of corresponding consequences. 

Governments all over the world collect a specific tax rate on petrol products, for instance. Meanwhile, the gas companies generate thousands of jobs and interlocking business opportunities that would experience a major disruption should petrol products be banned or restricted. 

Political change, then, is vital to the performance of the electric car industry and the surrounding sectors of the economy. Norway, for example, exempted electric vehicles from the 25% value-added tax on petrol and diesel engines, resulting in a market composed of 40% electric vehicle sales. 

The future of the electric car industry is dependent upon the kind of political change that starts in the various types of primary elections and rises all the way up to national leadership. Understanding these processes and where individual candidates stand on electric vehicles and petrol bans is necessary for determining the future of all vehicle markets. But is supporting a political push for electric car innovation the right thing to do?

The pros and cons of political change for electric car innovation

Like with any product or policy, there are upsides and downsides of electric cars and the political intervention that could prop up the market. The pros range from environmental benefits to a reduction in global conflict over fuel reserves. Yet, the damages to other industries and resulting job loss might be enough to give you pause in your own support of widespread political incentives for electric vehicle production. 

The following is a breakdown of the positives and negatives surrounding political change in the electrical vehicle market. 

The pros

Political change could very well produce a better, cleaner future for all of us through electric cars and their impact on the environment. But the positives of widespread electric vehicle implementation go beyond this massive global benefit.

Here are the pros you should consider regarding political change meant to propagate electric vehicles:

• For every gallon of gas consumed, 24 pounds of carbon dioxide and other greenhouse gasses are released into the environment. An abrupt transition to electric vehicles could eliminate this contribution to climate change.
• Consumers can save money on gas and maintenance with electric vehicles.
• Electricity can be renewed and replenished cleanly, while gasoline products cannot. At some point, a transition to electric vehicles is inevitable.
• Electric vehicles require less frequent maintenance than their gas-powered counterparts.
• Electric vehicles are quieter than the alternatives, meaning widespread use of them would make cities quieter, cleaner places to live.

A transition away from all gas-powered vehicles in exchange for electric vehicles powered by a clean energy grid could give the world all these benefits and more in the near future. Without such a state-funded innovation platform for electric vehicles, experiencing these positives could take decades, at which point significant and preventable damage to the environment may already be done. 

However, instituting this change at a national level would not come without casualties of a kind.

The cons

Opposition to a political push for electric vehicle integration isn’t baseless. In fact, real concerns exist for the millions of people across the world who work in the automotive and petrol industries. With the risks of job loss and a vehicle market that locks out the lower-income consumer, it is important to take these cons into consideration as well:

• Millions of jobs across the world could be lost in traditional vehicle manufacturing and petrol production.
• High prices of electric vehicles could prevent low-income consumers from purchasing a car. This could spiral into further socio-economic divisions that come without reliable transportation.
• Without a broad effort to install charging stations in many convenient locations, finding a place to charge could become massively difficult.
• Limited diversity in model types means consumers have less of a choice when purchasing a vehicle.
• As much as $50 billion in petrol taxes could disappear from the U.S. economy alone. 

There is a lot of potential in the future of electric vehicles, but without a proper transitional approach, the results might be devastating for a swath of industries. Even budgets at all levels of government could experience a shake-up from the impact that diminishing petrol taxes and increased incentives would cause. 

Any political approach to innovating the electric car market should take all these concerns and more into consideration if the damages are to be kept at a minimum. In the meantime, there are alternatives towards supporting the widespread implementation of electric cars that any consumer can take part in.

The best options for supporting electric vehicle innovation

Currently, the state of the vehicle market makes for difficulties in transitioning to a zero-emission future. From rising fuel prices to an infrastructure that is not built to accommodate electric vehicles efficiently, problems abound that may only be countered by political innovation.

However, there are options out there for supporting an economy and infrastructure that can better integrate electric vehicles in the near future. Here are just a few ideas:

• Engage in political conversations about clean infrastructure at your local government level.
• Support political candidates with clear plans for a feasible electric transition.
• Donate to or voice your support for broader public transportation options for your community.
• Look for new tech or startups that can improve the cost-effectiveness of electric cars.

While it is certain that a transition to electric vehicles will need to take place eventually, a political intervention now will come with a series of positives and negatives. Regardless of whether you support such an intervention, any consumer can take simple actions like these to encourage common-sense growth of the electric vehicle market that limits the damage to jobs and economic sectors.