CBO deals blow to EV purchase incentives
The nonpartisan U.S. Congressional Budget Office (CBO) estimates that current federal policies to promote the manufacture and purchase of electric vehicles, and some other types of fuel efficient vehicles, will have a total budgetary cost of $7.5 billion through 2019, but will have little or no discernible impact on greenhouse gas emissions or gasoline usage.
About one quarter of the current incentive policy's cost is in the form of tax credits for the plug-in market, which the CBO says will have the greatest effect of all the policies on electric vehicle sales, but those sales will have little impact on the stated goals of the policies - reducing GHGs and lowering gasoline usage and dependence on foreign oil. They do say that if future revisions of Corporate Average Fuel Economy (CAFE) standards are made more strict, then EV sales could show impact.
The focus of the CBO's study was on electric vehicles of the plug-in hybrid and battery-electric varieties (e.g. the Chevrolet Volt and Nissan Leaf respectively).