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The Loremo
When it comes to pushing a new technology out, there are no better ways then incentives in the form of tax cuts and financial rebates. Different governments handle things differently. Find out what works, and what raises questions.
The gist is that while most car companies are scrambling to develop electric drive technologies while keeping it affordable and profitable, they also have to work with governments who try to balance an even bigger picture, that of maintaining a healthy economy. Different countries tackle problems differently, which accounts for sales of certain vehicles doing better in certain places, and not as well elsewhere.
West Vs East. Comparing how both the West reacts and how the East tackles things is always enlightening. Having fundamental different ways of approaching solutions, Asia and western countries meet challenges differently. For instance, the Honda Insight sales have outperformed expectations in Asia but have not done nearly as well in the U.S., according to Earth2Tech. Upon further research, it seems to point to the higher price of gas in Asia.
Back To Gas Price. If gasoline is cheap in the U.S., it is not in Japan, nor is it in Europe where smaller fuel efficient car sales are still holding up. If Asia, Europe and the U.S. offer somewhat similar tax incentives for hybrids and pure electric vehicles, EV, the results vary according to the price of gas at the pump. The U.S. still has cheap gas which has not deterred consumers from gas guzzlers... at least for now.
Certain countries adopt radical solutions that may put them well ahead of the curve in the long run. Denmark taxes gas cars 180%, via the Denmark site, which is a sure deterrence. Sweden has cut its fossil fuel energy buy more than 50%, according to the Regeringen. Most of it comes from hydro and other alternative sources. Mostly, what we can witness is that countries where gas is highly taxed offer more fuel efficient cars, which is logical. What it should do is pause for reflection and consider why car makers in Asia and Europe are doing ever so somewhat better than we have in the U.S.. Maybe there is something to higher gas taxes, if it does in a controlled and intelligent way.
Until the U.S. coherently tackles the problem of cheap gasoline and continues strong incentives toward cleaner cars, the fuel efficient car sales will lag behind others which will hold it back in the long run. Thankfully, OPEC is working to raise the price of gas, helped by investors coming back into the speculative petroleum market.
Rapid Transit 2009
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Comments
Price of gas will likely continue to rise WITHOUT any push from the gumint. Peak Oil, I fear, is already here.
Europe and Asia are raping their consumers thru gasoline taxes, which are extremely progressive and favor the rich. Following their lead is nonsensical. The solution is to avoid the need for oil for most transportation.
Now that wasn't hard, now was it?
Hi Ken and Kerry,
Yes, OPEC is doing a good job at pushing up prices, and what they are having a hard time with are those overly enthusiastic investors who are diving head first into petroleum. Between those two, we should see higher prices soon.
Kerry,
I wasn't referring to any specific amount of gasoline taxation. The $4 a gallon seems to be the best case scenario so that EVs get more attentions. The rest, I'll let you do the math. Couldn't agree with you more with avoiding oil for transportation.
Nick
In the early 20th century, cars ran on gas, alcohol, electricity, and probably one or two other things. Sadly electric and alcohol faded and petroleum took over. However, a single fuel upon which infrastructure could be built probably saved consumers and businesses a lot of money over the years.
Today, as we look at alternatives, a myriad of choices seems good, but there's lots of added infrastructure costs in having a refueling station that provides gasoline, petrodiesel, ethanol (E10 thru E85), biodiesel (B3 thru B100), hydrogen, electricity (110V, 220V, 440V, 1.21 GW), propane, natural gas, et al.
Many people are very reluctant and averse to government mandates, but most embrace the wisdom of government mandated safety features such as seat belts and air bags. Well, oil dependence is a national safety issue.
The tax code is already making it easier for AFVs to flourish, and is even ahead of the power curve. I say more incentives for car makers to evolve off of ICEs.
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