America’s EV Adoption Hopes Hinge on Electric Trucks
- By Sam van de Schootbrugge
- 5 min read
The transition to electric transportation is central to decarbonisation efforts. The rate of electrification will hinge on three forces: intrinsic growth in demand for electric vehicles (EVs), production cost declines, and government stimulus of the industry. A new NBER working paper analyses the obstacles, opportunities and transition speed to widespread EV adoption. It finds:
Income, age, education, vehicle type and preferences over environmental cleanliness are strongly correlated with EV demand.
Intrinsic demand for EVs (demand not induced by government subsidies) is the most important determinant of EV adoption.
Government subsidies effectively stimulate EV demand, but their effect pales before other factors that influence intrinsic demand as EV adoption increases.
This article is only available to Macro Hive subscribers. Sign-up to receive world-class macro analysis with a daily curated newsletter, podcast, original content from award-winning researchers, cross market strategy, equity insights, trade ideas, crypto flow frameworks, academic paper summaries, explanation and analysis of market-moving events, community investor chat room, and more.