U.S. federal policies on increasing electric-car sales to cost $7.5 billion through 2019

The Congressional Budget Office estimates that federal policies to promote the production and purchase of electric vehicles and plug-in hybrids, will have a total budgetary cost of about $7.5 billion through 2019. The CBO said that that 25 percent of that cost will go in the form of tax credits for buying electric vehicles.

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Read our review on the Chevrolet Volt.

The CBO found that federal tax credit for EVs “will have little or no impact on the total gasoline use and greenhouse gas emissions of the nation’s vehicle fleet over the next several years.”

It pointed out that federal tax credits for traditional hybrid vehicles “did not reduce gasoline use or greenhouse gas emissions and the sales of those vehicles allowed vehicle manufacturers to sell more low-fuel-economy vehicles and still comply with CAFE standards.” (That’s pretty interesting).

Read more here.

– By: Omar Rana