Analysis of the Electric Vehicle Industry

CREATING THE CLEAN ENERGY ECONOMY

Analysis of the Electric Vehicle Industry

Creating the Clean Energy Economy

Analysis of the Electric Vehicle Industry

Primary Authors

Jennifer Todd is an Economic Development Associate at IEDC. Jess Chen is a Research Fellow and a PhD candidate at American University. Frankie Clogston is an IEDC Consultant and a PhD candidate at Johns Hopkins University.

Primary Editors

Liz Thorstensen, Vice President of Knowledge Management & Economic Development Practice, Tye Libby, Associate, Knowledge Management and Development

Acknowledgements

IEDC is grateful to the Rockefeller Brothers Fund for its generous support of this research project. Special thanks Lauren Avioli, Emily Brown, and Patrick McHugh for research support, and Mishka Parkins, who provided technical assistance for the creative design of the report.

? Copyright 2013 International Economic Development Council

This report was made possible by a grant from the Rockefeller Brothers Fund.

International Economic Development Council

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TABLE OF CONTENTS

Introduction to Electric Vehicles................................................................................................................... 4 Job Creation Potential of Electric Vehicles ......................................................................................... 12 The State of the U.S. Electric Vehicle Market ..................................................................................... 23

Hurdles and Solutions: Electric Vehicles Market ................................................................................... 61 Reduce the Cost of PEVs.........................................................................................................................63 Expand Charging Infrastructure ............................................................................................................ 73 Educate Consumer Perception ............................................................................................................... 83 Convention Gas Cars: Lessons for Electric Vehicles ........................................................................... 90

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INTRODUCTION TO ELECTRIC VEHICLES

Of all the oil consumed in the U.S., 70 percent is used for transportation. Further, passenger vehicles use 70 percent of transportation oil.1 Globally, a rising middle class in China and India is causing demand for passenger cars to balloon, and with it, demand for oil. By 2050, there may be as many as 1.5 billion cars on the road, compared to 750 million in 2010.2

This type of demand represents both a challenge and an opportunity to capitalize on new vehicle technologies, and in the process, reap substantial economic development benefits. In a world where oil is a limited resource, an alternate source of transportation fuel ? electricity ? is not only a smart investment, but as some would say, it is an inevitable one. Further, the switch to electric vehicles will generate demand for existing jobs and create new jobs as well. As study after study confirms, job growth in electric vehicle industries will outweigh any reduction of jobs in traditional fuel industries, resulting in net job growth. Electric vehicles create additional economic development opportunities by improving quality of life, reducing energy spending, and decreasing reliance on foreign oil.

The Importance of Electric Vehicles to Economic Development

Like any transformative new technology, electric vehicles create a variety of potent economic development challenges and opportunities. While the electric vehicle market is still at a relatively early stage of development, it is poised to reshape industries and communities the world over. This section provides a quick overview of the potential benefits of electric vehicles so that economic developers can better assess what the evolution of this market will mean to their specific local communities.

1 Harvard Kennedy School, Belfer Center for Science and International Affairs. (2011, July). Will Electric Cars Transform the U.S. Car Market? Cambridge: Lee, H. & Lovellette, G. Retrieved from 2 Harvard Kennedy School, Belfer Center for Science and International Affairs. (2011, July). Will Electric Cars Transform the U.S. Car Market? Cambridge: Lee, H. & Lovellette, G. Retrieved from

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