From: BOB SHETH, Electric Forum, Electric Forum, More from this Affiliate
Published June 7, 2015 07:33 AM

Why are some states reducing EV incentives?

First of all we have to say that the vast majority of US state authorities are continuing with their current electric vehicle financial incentives, with many actually increasing the amount of funds available, but some states are struggling. Connecticut, Georgia, and Illinois are just three states in the US where electric vehicle financial incentives are being tapered down. Whether or not they are reintroduced in the future remains to be seen but budgets need to be balanced.

Is this a reflection of the technology?

It would be easy to say that we are yet again looking at a false dawn for the electric vehicle sector but this would be wrong. There has been enormous government and corporate investment in the industry and it is inconceivable to even suggest it will fade away into the background as it has done before. The simple fact is that many states across the US, and governments around the world, are struggling to balance their books during the current tight economic environment and schemes such as financial incentives to switch to electric vehicles are feeling the brunt.

Is this the end of incentives?

As we suggested above, while there are signs that some states are struggling to maintain these incentives going forward there are also many states offering further incentive packages. These incentives on the whole are likely to continue for some time to come but the fact remains that the industry will at some point need to be self-financing and self-serving. There is no way that governments and state authorities around the world can afford to fund the industry forever although in reality great progress has been made.

Man with empty pockets image via Shutterstock.

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