A recent study conducted by Brent Bennett and Jason Isaac for the Texas Public Policy Foundation challenges the widely held perception that electric vehicles (EVs) are a more financially viable option than traditional internal combustion engine vehicles (ICEVs). The study, released by the conservative think tank, takes into account various government subsidies and credits that contribute to the economic viability of EVs.
Advocates for EVs often emphasize lower maintenance and fueling costs, but the study argues that the full financial benefit of these subsidies has not been adequately considered. According to the study’s findings, the average model year 2021 EV would cost $48,698 more to own over a 10-year period without the $22 billion in government assistance provided to EV manufacturers and owners. When factoring in the costs of subsidies, the true cost of fueling an EV is equated to an EV owner paying $17.33 per gallon of gasoline.
The study raises questions about the additional costs imposed on the electric grid by EVs, such as extra generation, transmission, and distribution costs. The authors conclude that, based on their conservative estimate, the average EV accrues $48,698 in subsidies and $4,569 in extra charging and electricity costs over a 10-year period, resulting in a total cost of $53,267 or $16.12 per equivalent gallon of gasoline. The study suggests that without sustained government support,
“There is a push for every driver to switch to electric, while almost every automaker has invested billions of dollars into expanding their electric vehicle lineups with hopes that you will make the switch,” said automotive expert Lauren Fix of Car Coach Reports. “Do the math and see what works best for you and your budget, and don’t be pressured into what may or may not work for you. A close inspection of the cost of an EV versus a standard car — the tax breaks, the maintenance, the fuel — may surprise you as to which is actually the better buy.”
EVs will likely remain more expensive than ICEVs for an extended period. This analysis comes amid ongoing discussions about the economic and environmental implications of transitioning to electric vehicles worldwide.
The real cost of Biden’s “transition” to electric vehicles pic.twitter.com/RhXb6k3lT9
— MRCTV (@mrctv) September 12, 2023
Study Reveals Real Cost of Charging Electric Vehicles Equals a $17.33 Gallon of Gashttps://t.co/U6uAea40Yl
— Twitchy Team (@TwitchyTeam) October 29, 2023