Earlier this month, the Trump Administration threatened to end federal tax credits for electric vehicles (EVs). But despite the disappointment this poses for many, it’s important to understand how government subsidies are bringing unintended consequences to the markets where they are issued. But decades later, diesel proved to be anything but environmentally friendly, and Europe was forced to ban diesel vehicles as they became a major cause of air pollution and smog. There are also many unanswered questions, and potential unintended consequences, impacting the lifetime ownership economics of electric vehicles as well as the societal burden to accommodate this transition. But until then, governments and the EV industry must first overcome obstacles they have failed to address; if not, more unintended consequences will result.

Source: Forbes December 26, 2018 16:07 UTC