Kennedy: why subsidize EVs? We all want clean air, but how much it would cost?


On 7/31/2024, during the Senate Budget Committee hearing, Senator John Kennedy (R-LA) took a critical stance against electric vehicles (EVs) and the subsidies used to encourage their adoption. The hearing featured several witnesses, including Dr. Jesse Jenkins from Princeton University, Ms. Britta Gross from the Electric Power Research Institute, Ms. Maureen Hinman from Silverado Policy Accelerator, Mr. Dave Schwietert from the Alliance for Automotive Innovation, and Mr. Jeff Davis from the Eno Center for Transportation. Throughout the hearing, Kennedy challenged the witnesses on the costs and practicality of transitioning to EVs.

Kennedy asked the witnesses why it is necessary to subsidize electric vehicles if they are so advantageous. Dr. Jesse Jenkins responded by highlighting the current higher upfront costs of EVs compared to internal combustion engine vehicles, noting that this cost is declining and that subsidies are a temporary measure to help the auto industry transition to a more sustainable future.

Ms. Britta Gross and Ms. Maureen Hinman both expressed their personal support for electric vehicles … Despite their endorsements, Kennedy persisted with his query, repeatedly asking why subsidies are necessary if the vehicles are as beneficial as claimed. Kennedy pointed to the limited adoption of EVs across the United States, noting that California and the West Coast are the primary regions embracing this technology, while other areas remain lukewarm. According to Ms. Hinman, only 1.6% of the 285 million vehicles in the U.S. are electric. Kennedy used these statistics to question the practicality of a nationwide transition to EVs.

The senator: how much it would cost to incentivize all Americans to switch from gasoline-powered cars to EVs. Mr. Schwietert and Mr. Davis both emphasized the importance of infrastructure, such as charging stations, to support EV adoption but admitted that the total cost remains uncertain.

Ms. Hinman highlighted China’s significant investment in the EV market, with subsidies totaling $12.4 billion last year. Kennedy, however, was more concerned about the financial burden on American taxpayers, repeatedly asking for a quantifiable cost to achieve widespread EV adoption in the U.S.

Kennedy expressed concerns about the economic trade-offs involved in pursuing aggressive EV policies. He argued that the focus on EVs could lead to increased electricity costs for consumers and questioned whether the environmental benefits justify the expenses.

Throughout the hearing, Kennedy pressed for transparency regarding the costs and benefits of transitioning to electric vehicles. He criticized the lack of concrete figures from the witnesses and suggested that the government should not continue to “throw money” at EVs without a clear understanding of the financial implications.

The senator also raised concerns about the global context, questioning whether countries like China and Russia would match U.S. efforts to reduce carbon emissions. He argued that if other major polluters do not invest similarly in reducing their carbon footprint, U.S. efforts may not significantly impact global temperatures.

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Kennedy: why subsidize EVs? We all want clean air, but how much it would cost?

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