subsidies

Explosive Growth Of Electric Vehicles | Earth Wise

May 25, 2023 By EarthWise Leave a Comment

Not long ago, electric cars were a rarity. Ten years ago, annual global sales of EVs were only a few hundred thousand. As of today, globally, still less than one percent of all the cars on the road are electric. But that is changing rapidly.

In fact, electric vehicles are expected to capture nearly 20% of the global market this year. Global sales of EVs were 3 million in 2020 and 6.6 million in 2021. Last year, sales of electric vehicles hit 10 million and are expected to reach 14 million this year according to the International Energy Agency.

Analysts at the IEA have had to repeatedly revise their projections for future EV sales as the numbers keep going up faster than predicted. Last year, they projected that EVs would account for 21% of global sales by 2030. Now, they expect that EVs will reach 35% of sales by that year.

In the US, the EU, and China, policy efforts are in place to boost EV sales. In the US, the Inflation Reduction Act both supports the EV industry and subsidizes consumer purchases with tax credits. As a result of such policies, the IEA expects electric vehicles to account for 60% of sales across these three large markets by 2030.

Part of what is driving the boom in EV sales is that prices continue to come down for the vehicles. When operating and maintenance costs are figured in, the EVs come out considerably cheaper to own. In addition, there are starting to be price wars in the EV industry as competition heats up in the sector.

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EVs to Capture One-Fifth of Global Market This Year Amid ‘Explosive Growth’

Photo, posted May 7, 2022, courtesy of Sharon Hahn Darlin via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Falling Lithium Prices | Earth Wise

May 1, 2023 By EarthWise Leave a Comment

Lithium, the key element in the batteries that power electric cars, as well as smartphones, tablets, and laptop computers, is sometimes called white gold. Over time, the price of the metal has gone up and up. But recently, and surprisingly, the price of lithium has actually gone down, helping to make electric vehicles more affordable.

Over the first couple of months of this year, the price of lithium has dropped by nearly 20%. The price of cobalt, another important component of vehicle batteries, has fallen by more than half. Even copper, another battery material, has seen its price drop by 18%.

Many analysts predicted that prices of these commodities would stay high or even climb higher. The reason for the decline, as well as whether it is likely to persist, is the subject of much debate.

Some experts believe that the price drops are a result of demand not being as high as expected, perhaps related to slowing sales growth of EVs in Europe and China after certain subsidies expired. Other industry experts said that the drop was a result of new mines and processing plants providing additional supply sooner than was thought possible.

Despite the price drops, mining and processing lithium remains an extraordinarily profitable business. It costs from $5,000 to $8,000 to produce a ton of lithium that sells for ten times that amount. With such fat profit margins, there is no shortage of banks and investors eager to finance lithium mining and processing projects. Such profit margins are probably not sustainable and that will likely result in more reasonable prices over time.

There is plenty of lithium in the world. The huge demand for it is a recent phenomenon and the world is still working out how to meet that demand.

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Falling Lithium Prices Are Making Electric Cars More Affordable

Photo, posted January 9, 2023, courtesy of Phillip Pessar via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Electric Cars Getting Cheaper | Earth Wise

April 12, 2023 By EarthWise Leave a Comment

A sticking point for buying electric cars has always been that they are typically more expensive than equivalent gasoline-powered cars. But increasing competition, government incentives, and falling prices for lithium and other battery materials is changing the equation. In fact, the tipping point when electric cars are as cheap or even cheaper than internal combustion cars is likely to happen this year for many cars and, in fact, has already happened for some.

Battery production is ramping up for Tesla, General Motors, Ford, and others, creating cost savings from mass production. Companies manufacturing batteries in the United States are receiving government subsidies as part of a drive to establish a domestic supply chain and reduce dependence on China. Before anyone cries foul, it should be noted that globally, oil companies received a trillion dollars in subsidies last year. The Inflation Reduction Act is making it cheaper for automakers to build electric cars (provided they do it in the United States using US materials) and cheaper for consumers to buy them because of tax credits.

Multiple companies have lowered the price of their electric vehicles in recent months, including both the Tesla Model 3 and Model Y, which are the best-selling electric cars in the United States. GM’s electric Equinox crossover will start at about $30,000, which is still about $3,400 more than the gas-powered version. But once the electric vehicle tax credit is figured in, it will actually be cheaper.

Electric cars are already cheaper to own and operate because of the much lower cost of powering with electricity instead of gas as well as the greatly reduced maintenance costs for the vehicles. Once the purchase price of these cars is less than that of gas-powered cars, the economics becomes a no-brainer.

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Electric Vehicles Could Match Gasoline Cars on Price This Year

Photo, posted May 11, 2021, courtesy of Chris Yarzab via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio

Soaring Heat And Inner-City Neighborhoods | Earth Wise

August 31, 2021 By EarthWise Leave a Comment

The record-breaking heatwaves this summer have exposed the special vulnerability inner cities have to the effects of summer heat. Climate change has exacerbated and supercharged heatwaves, as was seen in Seattle and Portland in late June.

Urban cores can be 10 degrees or more warmer than the surrounding countryside. The urban heat island effect is a result of how cities are built, with so much pavement, so many buildings, and not enough trees. On top of this, decades of disinvestment in neighborhoods where people of color live have left them especially vulnerable to heat as their homes are not able to cope with it.

In New York City, some residents of Hunts Point in the Bronx keep lists of neighbors they check on to help keep the most vulnerable alive during heat waves. The city has subsidized 74,000 air conditioners for low-income, elderly residents, and is spending millions to plant trees. In Phoenix, the hottest big city in the country, officials are working to develop new models for cooler public housing and cooling for streets and pedestrian corridors.

A study, published in 2020, looked at the linkage between higher heat island temperatures and past practices of redlining, where home loans and insurance were unavailable to people in neighborhoods of color. In 94 of 108 communities studied, the formerly redlined neighborhoods had higher surface temperatures.

Cities are confronted with two heat problems: emergencies that require immediate action to save lives, and long-term issues related to combating soaring temperatures in heat islands strengthened by global warming. In many cases, cities are not prepared for either problem. Dealing with and adapting to heat is essential to the long-term viability and quality of life in our cities.

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A Triple Whammy Has Left Many Inner-City Neighborhoods Highly Vulnerable to Soaring Temperatures

Photo, posted May 27, 2014, courtesy of Dan DeLuca via Flickr.

Earth Wise is a production of WAMC Northeast Public Radio.

What’s The Best Way To Reduce Emissions? | Earth Wise

April 1, 2021 By EarthWise Leave a Comment

A carbon tax is a fee imposed on the burning of carbon-based fuels, like coal, oil, and gas. It’s one way to make the users of carbon fuels pay for the climate damage caused by releasing carbon dioxide into the atmosphere.

According to a new study by researchers at Ohio State University, putting a price on producing carbon is the cheapest and most efficient policy change that legislators can make in order to reduce climate change-causing emissions.

The case study, which was recently published in the journal Current Sustainable/Renewable Energy Reports, looked at the impact that a variety of policy changes would have on reducing carbon dioxide emissions from electricity generation in Texas. The researchers found that assigning a price to carbon, based on the cost of climate change, was most effective.

The study did not look at how policy changes might affect the reliability of the Texas power system, an important consideration after the failure of the state’s power grid following winter storms in February.

But the study did examine other policies and found that they were either more expensive or not as effective, including mandates that a certain amount of energy in a portfolio come from renewable sources. Subsidizing renewable energy sources was also found to be less effective.

According to researchers, market-based solutions have previously proven effective combating environmental issues. For example, a cap-and-trade approach was used to reduce levels of sulfur dioxide, one of the chemicals that causes acid rain.

For the sake of the climate, we should probably tax carbon.

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