On 15 Sep 2014 at 9:16, Robert Bruninga via EV wrote:

> Partly because they are not paying for the added environmental damage...
> but pushing it off on the rest of us.

I agree with this point.

(TL;DR : skip to the last 4 paragraphs.)

In Europe, things that increase public costs are more often (though not 
always) taxed more.  (Duh.)  I remember talking in the late 1990s to a 
pottery maker in Italy who groused that she had to pay more tax, IIRC 
because of the emissions from her kiln.

That's just not much done here in the States.  These "social costs" are 
usually borne by all taxpayers, including those who don't cause them.

To be clear here, I'm not saying that people who truly need large vehicles 
should be "punished" for buying or having them.  Read what I wrote in my 
previous post on this subject.  There are lots of valid reasons.

However, as a case study, I submit South Korea.  

Until the late 1990s, they taxed small vehicles lightly, and large vehicles 
and those with large displacement ICEs very heavily.  The assumption was 
that if you could afford a big car, you could afford to pay more tax.  

Not surprisingly, the most popular car in Korea during the 1990s was the 
tiny, economical Daewoo Tico.

US automakers griped to our government that they were having trouble selling 
their vehicles in South Korea.  The US Trade Representative negotiated a 
deal with Korea (in reality "negotiated with" means "dictated to" in these 
cases).  Korea agreed to reduce their large vehicle taxes.  You can see the 
document here :

http://www.atesk.org/pages/vehicletax.html

An interesting thing happened. Between 1999 and 2000, the number of SUVs 
registered in Korea increased by 80%.  In 2000, small vehicles were still 
the majority, though they were quickly being overwhelmed.  

When I was there this summer, the vehicle mix looked a lot like the US's, 
except with fewer pickup trucks.  

Back in 2000, only one Korean I personally knew and rode with drove an SUV.  
Today almost ALL my Korean friends drive them.  That's a big change.

Here's an interesting sidebar.  The USTR's knuckle-cracking was supposed to 
open Korea's markets to US-made vehicles.  But it didn't.  Even today, those 
SUVs clogging Korean roads still don't say Ford and Jeep on them.  They're 
mostly Hyundais and Kias.  As of the last few years, a few are branded 
"Chevrolet," but they're not US-made - they're built in Korea by GM Daewoo.

So the USTR's meddling in Korean laws didn't do anything significant to 
achieve its ostensible goal to improve US-made vehicle sales.  It did, 
however, make parking much more difficult, increase the diesel soot in the 
air, and raise Korea's energy use and CO2 emissions.

The point is that financial incentives for buying vehicles that are better 
for your country and the world WORK, as they did in Korea before 1998.  They 
don't exist in a vacuum; you have to coordinate them with other laws and 
incentives.  You have to make them strong enough.  But they can and do WORK.

As of 2015, Korea's Ministry of Transport is offering a subsidy of 15 
million won (pretty close to $15k) for Koreans who buy an EV, and some 
cities and provinces also have incentives running 3-8 million (around $3-
8k).  

For 2015 their choices will be a Kia Soul or a Chevy (Daewoo) Spark.  We 
will see what happens.  But you can bet that if these incentives last, a LOT 
more automakers there will be introducing EVs.

I know that libertarians abhor subsidies and incentives, and I understand 
why.  I understand that often there are unintended consequences.  I 
understand that often the benefit sometimes isn't evenly or fairly 
distributed among the population.  But when it comes to determining how a 
nation's or state's drivers buy vehicles, incentives WORK.

Which (for patient folks still with me) brings us to in interesting notion.  
As I said before, the problem with commercializing large EVs is how fast the 
battery cost (and to a lesser degree, drivetrain cost) increases as the size 
of the vehicle goes up.  

What if EV incentives were tied to that specific EV's amount of potential 
environmental improvement?  That is, what if replacing a 6000lb ICE pickup 
or SUV with an EV pickup or SUV got you a bigger subsidy than replacing a 
3000lb sedan with a 3000lb EV?  

A lot of folks who oppose large vehicles on principle would be upset that it 
put yet more big vehicles on the road, and didn't do as much to reduce 
energy use and CO2 emissions as replacing those pickups and SUVs with small 
EVs.  But in a nation that's clearly already addicted to large vehicles, 
where a lot of folks will NEVER buy a small car no matter how cheap it is, 
such a policy might - might - actually do more to reduce energy use and CO2 
emissions.

I'm not an expert, and I don't have any research that say that this will for 
sure work.  But maybe it's something to think about, and perhaps research 
further. 

David Roden - Akron, Ohio, USA
EVDL Administrator

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