UC Berkley economist analyzes “Electric Cars in the United States”
July 13, 2009 · By Charles Anthony
Forget about the grandiose predictions of increased jobs, decreased pollution, health-care savings and diminished dependence on oil imports. Just focus on the headline conclusion from UC Berkley economist Thomas Becker’s newly released study ‘Electric Cars in the United States: A New Model with Forecasts to 2030′ is simple. The cost of electic car batteries are high, therefore separating the ownership of the battery from the rest of the car would lead to a rapid adoption of electric cars by consumers.
The proposal is that of a leasing arrangement with a battery company:
The business model that Berkeley advocates is essentially what the company Better Place is pursuing. When consumers purchase an all-electric car covered in the Better Place plan, the company owns the batteries. Consumers get an electric charger at their home and access to battery-swapping stations.
Well, duh. Anybody can tell you that a lease arrangement will increase access to people who can not afford to buy something entirely. In fact, why not just advocate the outright leasing of the entire electric car?!?
Wait a minute, now. Leasing cars already exists. In that light, there really is not much to see here in this Berkley study — unless of course there is the expectation of government subsidization. Crony capitalists, be proud!
From the Better Place website:
Agassi works with government leaders, auto manufacturers, energy companies and others to make his vision—zero-emission vehicles powered by electricity from renewable sources—a reality in countries around the globe.
My type of guy!
Right now I can buy ten dollars worth of gas if I want. Can I buy ten dollars worth of battery? This is not going to work.. only the very rich will drive.
“Well, duh. Anybody can tell you that a lease arrangement will increase access to people who can not afford to buy something entirely. In fact, why not just advocate the outright leasing of the entire electric car?!? ”
-Charles Anthony.
“Second, electric vehicles with switchable batteries can have a driving range comparable to gasoline-powered vehicles. Just as there is a network of gas stations, the study incorporates the cost of a network of public battery charging spots augmented by battery switching stations into the per-mile service contract price offered by electric car network operators. This business model innovation will ensure that a sufficient density of electric car infrastructure is deployed to extend the range of these vehicles. Through this system, Becker argues that “the overall range of electric cars will eventually rival that of gasoline-powered vehicles.” ”
-From the article linked to at the top of the page.
I believe it’s around now that you usually accuse people of not being able to read.
No, Mr. C, I can do better. It is now that I accuse people of not being able to see crony capitalism (i.e., rich people demanding business subsidies) when it stares them right in the face. Then, I accuse foolish socialists of not being able to see how they are being fooled by the elite.