The Environmental Protection Agency (EPA) presented new rules on auto emissions on April 10 to further accelerate electric vehicle demand in the United States.
EPA will mandate over 50% of all new automobile sales in the US be electric by 2030. That percentage will increase by up to 67% by 2032; New York Times reports citing two sources familiar with the matter.
For context, the transportation industry contributes the largest carbon dioxide emissions in the country, per the Congressional Budget Office. On top of that, the US is apparently the second country with the highest CO2 footprint after China. Therefore, the new proposals would aid the Biden administration in decreasing automobile pollution.
Are regulations effective in boosting EV uptake in the US?
EVs only held 5.8% of the US auto market in 2022, per Cox Automotive. In response, the federal government offered various financial incentives to urge customers to buy EVs.
For instance, the Inflation Reduction Act provides up to $7,500 tax credits for buyers, depending on the EVs’ qualifications.
However, there is still a need for more charging infrastructures to actually boost EV uptake. As of now, there are only around 130,000 EV chargers across the country,
That said, the US must increase that figure over eight times by 2030 to support EVs on the roads, per S&P Global Mobility.
Apart from that, the US still needs to solidify its raw materials supply chain.
EV prices are declining, but is that enough?
EV prices are continuously declining but are still way more expensive than ICE vehicles.
The New York Times reports, citing Kelley Blue Book, that EV prices are $11,000 higher than average traditional passenger cars and trucks.
For instance, American EV giant Tesla has used price cuts for some of its models more than once. Despite that, US buyers take about 11 years before replacing their vehicles.
Indeed, reducing automobile pollution has spread around the globe. In fact, nations like France and Germany set goals to phase out diesel and gasoline engines from 2025 to 2050.
