Tuesday, 14 June 2022

Our Friends Electric?

The UK's Department of Transport (DOT) will abruptly cease, its last remaining subsidy for electric cars (https://www.theguardian.com/business/2022/jun/14/government-pulls-plug-on-its-remaining-uk-electric-car-subsidies). The DOT's axing of its £300m plug-in car scheme, will leave the UK as the only major European country without electric car incentives. In the UK, battery-powered and hybrid electric cars currently account for 50% of new cars sold. There is consequently still some considerable distance to go, if such vehicles are to become the norm (as would be needed to counter climate change). Increasing the numbers of battery-powered and hybrid electric cars, might also have the benefit of slowing the current rate of rise in the prices of petrol and diesel. The DOT argue that the money saved by abandoning their plug-in car scheme, will 'free up funds to expand the charging network and support other battery powered vehicles'. The scale of the funds that would be 'freed up' is, however, unclear (£300m?). Will the charging network be expanded by encouraging charging points near people's homes or by stimulating company activity? The nature of the alternative battery powered vehicles being considered is also uncertain. Is the DOT contemplating subsidising electric bikes and/or scooters? Or is their focus, going to be on trucks or buses? The timing of the current subsidy's removal seems particularly poor?

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