Economics Policy Research USA

Switching to EVs could save every household $1,000 per year

We already know that the high cost of EVs is a major barrier stopping many people going electric, however a new study has shown that there are actually large economic benefits from switching to EVs.

The 2035 Report 2.0 is a major piece of research from the Berkeley University of California that examined the changing costs and benefits of switching to an EV and also forecast how quickly the US could switch all new car sales to Electric. The report found that by electrifying all new cars and trucks the US could save $2.7 Trillion between now and 2050, saving every American household $1,000 per year for the next 30 years! This is on top of the fuel and maintenance savings that EV drivers are already benefitting from.

The work needed to shift the US to fully electric cars and trucks would create over 2 million new jobs and help boost the economy at a time when it really needs it.

But the benefits are not only economic: If the transition to EVs was combined with a 90% clean energy grid, then it would enable the US to reduce CO2 emissions by 45% (on 2005 levels) which would significantly help toward President Biden’s new climate goals.

Video courtesy of Goldman School of Public Policy, University of California Berkeley

In addition to this there would be huge health benefits, stopping at least 150,000 premature deaths from toxic pollution and green gases. This in turn would save up to $1.3 Trillion in health costs.

All in all the report makes a pretty compelling case for rapidly shifting the US car market to fully electric vehicles. However as the study also points out, it will take a lot of work from the public and private sector to achieve this. Including both federal and state government stepping up to strengthen emissions standards and the car industry accelerating EV roll out to achieve it.

Photo by Sharon McCutcheon on Unsplash

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