{"id":900,"date":"2023-02-09T00:00:00","date_gmt":"2023-02-09T04:00:00","guid":{"rendered":"https:\/\/bohn.org\/wpmocha\/peanutgallery\/?p=900"},"modified":"2023-02-09T06:09:02","modified_gmt":"2023-02-09T10:09:02","slug":"predictably-increased-electric-vehicle-subsidies-leads-to-increased-electric-vehicle-prices","status":"publish","type":"post","link":"https:\/\/bohn.org\/wpmocha\/peanutgallery\/2023\/02\/09\/predictably-increased-electric-vehicle-subsidies-leads-to-increased-electric-vehicle-prices\/","title":{"rendered":"Predictably, Increased Electric Vehicle Subsidies Lead to Increased Electric Vehicle Prices"},"content":{"rendered":"\n

Back in August 2021 all of my posts were on economic topics, building up to, or dealing with the implications of, this central thesis: “broad-based demand-side subsidies tend to cause the price of the subsidized commodity to increase<\/a>.” The ensuing posts applied this principle to healthcare<\/a>, higher education<\/a>, and housing<\/a>.<\/p>\n\n\n\n

As part of the push to eliminate reliance upon fossil fuels, many have been urging the use of electric vehicles. (This post is not about whether that is a good idea.) One problem is that electric cars tend to be more expensive that gasoline-powered cars. The knee-jerk reaction is of course a government subsidy program, in this case a provision of the Inflation Reduction Act which grants a tax credit of up to $7500 for the purchase of an electric vehicle.<\/p>\n\n\n\n

Last weekend the online version of ABC News reported<\/a> “Tesla has raised prices on its Model Y in the U.S., apparently due to rising demand and changes in U.S. government rules that make more versions of the small SUV eligible for tax credits.” Utterly predictable.<\/p>\n\n\n\n

One caveat here. apparently there is a price limit for vehicles to be eligible for the [full] credit, so there may be an incentive for manufacturers to rein in prices. Such features are necessary if a subsidy scheme is truly going to put the subsidized commodity into the hands of people who cannot (or choose not) to pay for it completely on their own.<\/p>\n\n\n\n

Jay Bohn<\/p>\n\n\n\n

February 9, 2023<\/p>\n","protected":false},"excerpt":{"rendered":"

Back in August 2021 all of my posts were on economic topics, building up to, or dealing with the implications of, this central thesis: “broad-based demand-side subsidies tend to cause the price of the subsidized commodity to increase.” The ensuing posts applied this principle to healthcare, higher education, and housing. As part of the push … Continue reading “Predictably, Increased Electric Vehicle Subsidies Lead to Increased Electric Vehicle Prices”<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-900","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/bohn.org\/wpmocha\/peanutgallery\/wp-json\/wp\/v2\/posts\/900","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bohn.org\/wpmocha\/peanutgallery\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bohn.org\/wpmocha\/peanutgallery\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bohn.org\/wpmocha\/peanutgallery\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/bohn.org\/wpmocha\/peanutgallery\/wp-json\/wp\/v2\/comments?post=900"}],"version-history":[{"count":4,"href":"https:\/\/bohn.org\/wpmocha\/peanutgallery\/wp-json\/wp\/v2\/posts\/900\/revisions"}],"predecessor-version":[{"id":905,"href":"https:\/\/bohn.org\/wpmocha\/peanutgallery\/wp-json\/wp\/v2\/posts\/900\/revisions\/905"}],"wp:attachment":[{"href":"https:\/\/bohn.org\/wpmocha\/peanutgallery\/wp-json\/wp\/v2\/media?parent=900"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bohn.org\/wpmocha\/peanutgallery\/wp-json\/wp\/v2\/categories?post=900"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bohn.org\/wpmocha\/peanutgallery\/wp-json\/wp\/v2\/tags?post=900"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}