Sexy,
but expensive
Editor's note -- The study cited below was carried out in 2009. Thus, it's interesting to note how accurate it is today, 3 years later. Unfortunately, based on plug-in sales, one would have to conclude the study was quite accurate. Why isn't Congress ever as accurate?
A new
study by the University of Michigan Transportation
Research Institute (UMTRI) finds that the move to
plug-in hybrid vehicles will not be easy. Likewise,
even if the current Federal Tax Credit for plug-in
vehicles - ranging from $2,500 to $7,500 based on
battery pack capacity - were made permanent, even more
incentives would be required to achieve any serious
market penetration, such as a sales tax exemption, in
addition to other subsidies.
Under the best case scenario, according to the study,
market penetration could be 20 percent in 30 years.
However, without a permanent federal tax credit, PLUS
additional incentives, plug-in adoption will be
"feeble at best."
In conclusion, the researchers suggest a 5 cent gas
tax to be used to create additional plug-in
incentives. Unfortunately, I'm not sure if that 5 cent
gas tax funds both the current Federal Tax Credit,
which is capped, and the additional incentives
required, or just the additional incentives. If the
gas tax covers only the additional incentives, then a
larger tax should be assumed.
Unfortunately, even under this best case scenario, gas
consumption would only be reduced by 20 percent,
meaning that the US would still be heavily dependent
upon foreign oil in 30 years.
Labels: plug-in
hybrid vehicles, tax
credits
