First on Fox: The American Energy Institute (AEI), a trade group representing oil, gas, coal and nuclear energy producers, is clarifying how the government subsidizes Electric Vehicle (EV), Combined with regulatory credit systems for vehicle emissions, the cost of automobiles and utilities has increased.
More stringent corporate average fuel economy and greenhouse gas tail emission standards force gasoline-powered vehicle manufacturers to produce more electric vehicles. As a result, this disconnects automakers’ resources from gasoline-powered automobile production and electric vehicle production, ultimately increasing the cost of gasoline-powered automobiles.
If automakers don’t generate enough electric cars to meet state and federal standards, they are forced to purchase credit systems to offset production of their emissions, inevitably creating another avenue where additional expenses are transferred to consumers, the report said.
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The AEI report states that utility costs can also have an impact. State and federal subsidy and rebate programs are used for electric vehicle charging infrastructure, while beneficial to utility companies’ profits, but again lead to increased costs that are then passed to payers. 40 states provide rebates for home-grade chargers, while at the federal level, rebates and subsidies programs for electric vehicle charging infrastructure have received the first $7.5 billion in investment President Joe Biden.
“By regulating credit, subsidies and behind-the-scenes rulemaking, federal agencies shift costs from wealthy EV buyers to working-class Americans, while also turning around the already stressed grid,” said Jason Isaac, founder of the report and co-author of AEI’s founder and co-author of AEI. “It’s not about consumer choice or energy innovation. It’s an administrative uptick that makes Americans pay more to drive and keep the lights going.”
Isaac, the former Texas Representativehe admitted that during his time in the Legislature, he worked hard to create EV subsidies in the Lone Star State, providing $2,500 in tax credits for all EV buyers. He said over time he realized that most all-electric vehicles were purchased by wealthy people, who, according to the National Bureau of Economic Research, even without subsidies.
“This policy is not a home run,” explain Hunt Allcott is a professor of environmental and social sciences and a senior fellow at the Stanford Institute for Economic Policy, where he is involved in the federal electric vehicle tax credit system. “and [Inflation Reduction Act’s] The electric vehicle tax credit slowed down climate change and transferred production to U.S. manufacturing companies, which also imposed high costs on U.S. taxpayers. ”
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According to AEI’s research, benefits are purchased from an estimated hidden subsidy of $94,000 to $153,000. These numbers explain the cost Automobile Manufacturer The expense of bearing the losses of government authorization and forced electric vehicle production, ultimately increasing consumer prices.
Tesla charges for electric car charging stations in New York.
The AEI report notes that rebates and subsidies for electric vehicle charging infrastructure are also increasing consumers’ basic utility rates. It is estimated that if each EV sold each generates an internal or commercial charging infrastructure, the 1.1 million electric vehicles sold in 2023 will receive over $827 million in residential charge tax credits.
Isaac said the rebates and subsidies were then used by utilities to lobby the Utilities Commission to approve higher base rates as they are strengthening the infrastructure to improve EV infrastructure.
“When you go buy a gallon of gasoline, [taxpayers] There is no help to pay for that gallon of gas; Isaac said: “All the expenses are embedded in a gallon of gas. So the typical electric vehicle fee, whether paid at a charging station, is just a small part of the cost. That charging station itself has received substantial subsidies from the state and federal governments, utilities have come in and added infrastructure or improvements, enhanced infrastructure to cope with loads, and interest rate payers in that particular area are taking that burden.”
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“Eliminating these expensive EV orders is exactly what President Trump needs to take in an energy emergency,” said Jason Isaac of the American Energy Institute. “It will start the rise of the U.S. automotive industry, lowering the price of new cars and reducing the pressure on our grid, thus bringing energy costs to every household.” (AP/Getty/Fox)
An anecdote used in the report to illustrate the cost burden of electric vehicle charges and discounts assume that if a home is primarily purchased EV charger On a street with 10 people, local power companies offered homeowners $500 in rebates, and the downhill impact caused each of the 10 households to have about $50 in cost to build the charger, due to increased interest rates on subsidies.
Isaac said the cost of gas power buyers and utility tax payers increased, indicating the need to get rid of these authorizations for clean air.
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“Eliminating these expensive EV orders is exactly what President Trump needs in an energy emergency,” Isaac said. “It will start the rise of the U.S. automotive industry, lowering the price of new cars and reducing our grid pressure, thus bringing energy costs to every household.”
Fox News Digital engages with several EV advocacy groups, including Drive Change. Drive Electric, America, DriveLectric USA, Evhybridnoire, Sierra Club and the Electric Vehicle Association, but there was no response to the release of this story in time.
