New Study Predicts Gradual Adoption of Electric Vehicles into National Fleet

Study: National EV Adoption will be Gradual

The Energy Innovation study modeled the effect of tax credits based on a low, moderate and high scenario.

This month, President Joe Biden signed the Inflation Reduction Act (IRA) into law. A study by Energy Innovation, a climate policy think tank, stated that “the IRA is the most significant federal climate and clean energy legislation in U.S. history, and its provisions could cut greenhouse gas (GHG) emissions 37 to 43 percent below 2005 levels.”

The Inflation Reduction Act includes $369 billion in funding for emissions-reducing climate and clean energy provisions including large-scale clean energy technology manufacturing investments, environmental justice and electric vehicle (EV) tax credits. The IRA includes a tax credit of up to $7,500 for personal electric vehicles. The credit amount depends on a variety of factors, such as whether the vehicle battery meets manufacturing standards, vehicle MSRP price, individual household income and Made-In-America provisions.

The Energy Innovation study modeled the effect of these tax credits based on a low, moderate and high scenario. The low scenario accounted for the possibility that no vehicle manufacturers will qualify for the EV credit, while the high scenario assumed that a gradually increasing share of new vehicles would qualify for the credit, with all new vehicles qualifying by 2030. In all three scenarios, the change in market stock EV and Plug-In Hybrid Electric Vehicles (PHEVs) did not significantly increase by 2030.

The transportation marketplace is slow to adopt change, because only a fraction of the stock of vehicles is replaced each year. The Energy Innovation Study found that “it can take many years to realize deep sectoral reductions, even with high shares of clean vehicle deployment. This highlights the importance of strong ZEV [Zero Emission Vehicle] incentives in the next decade, as waiting runs the risk of missing climate goals due to slow stock turnover.”

“ASA is working hard to ensure that independent vehicle repair shops are prepared for a changing marketplace that will include a higher share of battery-electric and plug-in hybrid electric vehicles. This includes investing in electric vehicle repair training so that shops are able to repair the vehicles they see today, and well into the future,” said Automotive Service Association chairman, Fred Hules.

Read the Energy Innovation study here

You May Also Like

Federated Members Make Their Voices Heard in DC

The Federated team met with federal lawmakers to explain the importance of the REPAIR Act.

Federated Auto Parts members and executives traveled to Washington, D.C., last week to voice their support for the REPAIR Act.

The Federated team spread out through Capitol Hill to meet with Senate and Congressional personnel and explain the importance of this critical piece of legislation. 

Auto Care: ‘Automotive Right to Repair Gaining Momentum’

During a Sept. 27 hearing, more than a dozen members of Congress inquired about the details of the REPAIR Act.

House Subcommittee Examines Potential Impact of REPAIR Act

Subcommittee members and others expressed enthusiastic support for the legislation.

The REPAIR Act Set for Committee Meeting Next Week

The REPAIR Act is headed for a House subcommittee hearing at 10:30 a.m. Sept. 27 in the next step for the bill.

Hanvey Legislative Summit
SVI Spells Security in Right to Repair

Are security and safety concerns raised by NHTSA legitimate?

Other Posts

EPA Spares Collision Repairers from Proposed Clean Air Regs

ASA applauded the EPA for excluding collision repair facilities from increased reporting under a proposed emissions rule.

Auto Care Association Backs LKQ Corp., Keystone Automotive

The association says that minimal design modifications should not grant OEMs a monopoly on replacement parts.

The Alliance Talks Right to Repair with Texas Rep.’s Office

The Alliance hosted Jalen Falcon, district director for US Representative Tony Gonzales, 23rd District of Texas.

Jalen Falcon The Alliance Right to repair
Tesla, Rivian Support Right-to-Repair ‘Pact’

Tesla and Rivian have expressed support for the 2014 MoU, which is ineffective, aftermarket associations say.

right to repair