Building a National EV Charging Network: Full Charge Economics
TL/DR –
The President’s American industrial strategy focuses on the adoption of electric vehicles (EVs) to address the U.S.’s economic and national security needs. This plan follows market research indicating high consumer satisfaction with EVs, with the U.S. EV market growing and President Biden setting ambitious goals for accelerating the EV transition through his Investing in America agenda. The plan includes strategies for making strategic public investments, supporting fair competition, crowding in private investment and creating good jobs.
Chief Economist Discusses US Electric Vehicle Strategy
According to the President’s modern American industrial strategy, addressing market failures and building a clean energy economy are pivotal in serving U.S. economic and national security needs. With transportation contributing a third of U.S. greenhouse gas emissions, the large-scale adoption of electric vehicles (EVs) is essential for achieving net zero emissions by 2050.
The rapidly growing U.S. consumer market for EVs is being supported by President Biden’s ambitious goals for accelerating the EV transition. Through the Inflation Reduction Act, he is working with Congress to lower EV prices and incentivize American EV and battery manufacturing, which has attracted over $152 billion in sector investment since he took office.
Despite high consumer satisfaction with EVs, data reveal that the lack of public charging availability is a main deterrent for potential EV buyers. Public investment in a comprehensive EV charging network is a cost-effective solution to overcoming market limitations hindering EV adoption. The President has invested $7.5 billion into building a national network of EV chargers.
Making Strategic Public Investments
The Biden administration is addressing the “chicken or egg” problem of the charging network challenge. Consumers hesitate to buy EVs without sufficient charging infrastructure, limiting demand, while firms are careful about investing in such infrastructure without enough EVs to support that investment, limiting supply. President Biden’s Investing in America agenda is making public investments in the network of EV chargers and has committed to building a national network of at least 500,000 public chargers by 2030.
Supporting Fair Competition
To ensure that the future U.S. EV charging market is competitive and fair, President Biden has implemented proactive policies. The administration has established minimum standards for all EV chargers funded through federal programs, ensured charging pricing is transparent, and required chargers be available and working when people need them.
Crowding in Private Investment and Creating Good Jobs
The Bipartisan Infrastructure Law provides a down payment on establishing a nationwide EV charging network, designed to incentivize private investment in combination with the Inflation Reduction Act’s tax credits. All charging infrastructure eligible for the grants must be manufactured in America. These investments generate good jobs for American workers and support those already working in EV-related jobs.
—
Read More US Economic News