Already, you know how electric vehicles (EVs) go easy on the environment; they don’t put any carbon into the air or produce exhaust. They’ve solidified their position as great vehicles for the climate. However, what many people haven’t realized is how they can impact the economy.
You can be sure that EVs aren’t only good for the environment but are also good for the economy. Their impact on the economy comes from how they save you and the government a lot of money in the long run!
If you want to learn how electric vehicles are good for the economy, read on as this post delves into the EV’s impact on the economy. It will also look at the challenges facing EVs and a few things to consider when buying an EV.
Economic Benefits of Electric Cars
Electric vehicles pack a bunch of economic benefits that make them great alternatives to gas-powered vehicles. If you’re looking for a vehicle to commute between work and home, you want to consider the economics first. It’s great to see EVs benefiting car owners and the government economically. Some of the EV economic benefits include:
Job Creation
Electric vehicles create a lot of jobs that contribute to economic growth. When more people join the working class, the government can tax their income and use the collected revenue to develop infrastructure. EVs create jobs at various levels:
Manufacturing
The new factories built to manufacture electric vehicles require a workforce. You have assembly line workers providing hands-on expertise in vehicle parts installation. You also have manufacturing technicians operating crucial machinery that welds or assembles vehicle components.
Charging Station Installation and Maintenance
Qualified electricians and service technicians get the job of installing EV charging stations. Also, they will maintain the charging infrastructure and repair malfunctioned charging systems.
Automotive Repair
The computers onboard EV require a mechanic with specialized skills to diagnose your electric vehicle (EV). The mechanic will troubleshoot problems unique only to electric vehicles. If the battery pack or motor has a problem, the mechanic will service and repair these components.
Industry Growth
What’s more, automotive makers shifting to EV production results in industrial growth. For starters, car manufacturers heavily invested in EV production will be well-positioned to benefit from the future EV sales that are poised to increase.
Also, the EV battery production industry will grow as the battery demand from EV automakers will increase. The energy sector will grow as the government and private investors fund the building of renewable energy generators that feed into the national grids to keep up with the increased demand for EV charging.
Decrease Fossil Fuel Dependency
More electric vehicles on your streets means reduced dependency on fossil fuels since these cars use battery energy only. You can charge EV batteries from renewable energy generators like wind and solar. Reducing dependence on fossil fuels improves your country’s national security.
It means your country can’t depend on another country to sustain its transport sector. If your country can move goods and labor between two points without dependence on external energy sources, its economy can have undisrupted growth.
These factors contribute to a decrease in fossil fuel dependency:
Fuel Cost Savings
If you consider what you pay for gas and electricity rates, you find out that it’s incredibly cheaper to pay for battery charging. By the time your vehicle’s life ends (which is estimated to be after 14 years), you’ll save a lot of money as you pay less to charge the battery. As many people realize that it’s cheaper to own an EV, the demand for fossil fuels decreases.
Rising Gas Prices
Oil prices fluctuate and can rise to all-time highs, making gas prices unbearable. If people can barely afford gas, they resort to driving less expensive EVs. And this reduces fossil fuel demand.
The Connection of Oil Prices and Recessions
Oil has always played a significant role in driving the world’s economy. Nothing moves without this essential commodity. That’s why it’s directly connected to economic growth. If oil prices increase to burdening levels, the affected country experiences a recession.
Depending on fossil fuels means your country can undergo economic recession if oil prices increase or if oil becomes scarce. Countries are now trying to depend less on fossil fuels to avoid recessions. Due to a direct connection between oil prices and possible recessions, there’s now a decrease in fossil fuel dependency.
Health Impacts
Electric vehicles certainly have some impacts on health. Many people don’t know how these vehicles contribute to the improved health of the general public.
Fewer Emissions
Electric vehicles don’t emit harmful pollutants like carbon monoxide and nitrogen oxides into the air. These pollutants, usually from the tailpipes of conventional cars, cause smog, leading to respiratory problems like asthma and heart diseases. Since EVs don’t have a tailpipe in the first place, they don’t produce these pollutants; they impact everyone’s health positively.
Energy Security
Besides reducing health risks, EVs contribute to energy security in any country. As we’ve already seen, EVs reduce dependence on external energy sources, securing a country’s energy needs. Any country that wishes to be energy independent diversifies its energy sources. The country will build wind farms, solar generators, and geothermal power plants among other energy generators. If the said country has multiple energy generators, it becomes energy secure.
Challenges and Considerations
EVs have solidified their position as vehicles for the future. However, they face challenges that need addressing if they are to remain vehicles of the future.
Impact on Oil Industry
EVs are disrupting the oil industry in several ways. First, they’ve reduced dependence on oil as a source of energy for vehicles. But most importantly, EVs are shifting profits from oil to electricity production. Electricity providers will reap big as EVs rely on electric energy for propulsion.
Jobs in the oil industry will likely shrink in the future since a reduced dependence on oil might reduce exploration and mining activities. Not only will jobs be reduced but also the revenue generated from the oil industry.
Battery Production and Management
The battery pack is the energy reserve of any electric vehicle; it stores the energy the vehicle needs. If something affects battery production and management, it could pose serious challenges to EVs and the transportation industry.
Already minerals such as lithium, cobalt, and nickel are limited resources. We can’t mine these rare metals forever; we will deplete them sometime in the distant future. The scarcity of these essential minerals affects battery production and management.
Upfront Costs
Buying a new electric vehicle means overcoming a sticker shocker. Unlike gas-powered vehicles, electric vehicles require a substantial amount during a purchase. The cost difference between gas and electric vehicles can be quite a hurdle, especially if you’re on a tight budget. The high initial purchase cost can make EVs seem to be out of reach for many people looking to own a car.
Infrastructure Investment
Any country expecting to unleash the full potential of electric vehicles has to invest in proper infrastructure first. There are some crucial infrastructures that you’ll develop before having EVs cruise down the streets:
Charging Network Deficiency
The government has to have either a Level 2 or 3 charging station where EVs can boost battery power. Level 2 chargers connect from AC power generators and deliver between 3.3 kW and 19.2 kW of power to an EV’s battery. With this impressive power output, it can add up to 75 miles of range in one hour.
On the other hand, a Level 3 charger pushes 350kW of power into your battery pack, adding up to 200 miles of range in only 30 minutes! Any area that wants EV transportation needs to install these charging systems first.
National Grid Upgrades
The national grid can only supply enough power to charge a manageable number of EVs. If more people buy EVs, it means the national grid has to supply more power that meets the increased charging needs. Governments will upgrade the grids to meet the demands. Since this upgrade requires a substantial investment, it could impact EV adoption in the transportation sector. You want to consider your grid’s capabilities before adopting electric vehicles.
Conclusion
Electric vehicles seem to be poised to replace conventional cars in the future. First, they have zero emissions, which don’t pollute the environment. In addition to going easy on the environment, they contribute to economic growth in various ways. Most notably, they reduce dependence on oil, meaning a country reduces its chance of undergoing economic recession.
Additionally, EVs create more jobs as people work in car factories and assembly line workers and technicians. The government can then tax incomes from such jobs and develop the public infrastructure. However, EVs face a few hurdles that we’ll need to overcome to fully adopt them. One such hurdle is the upgrade of national grids. But they remain great vehicles for the future. Add an EV to your fleet to reduce dependence on oil and minimize ownership costs.
