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American Enterprise Institute Scholar Kenneth Green on the government subsidizing electric vehicles.
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There has been a slew of not so good green car headlines in the news most recently General Motors.
Reportedly discount in the Chevy -- -- 101000 dollars or a quarter of mystical price.
In order to -- sales this on top of the seven and a half billion dollars taxpayers will pay over the next seven years.
To subsidize.
These cars my next guest says.
This is all just welcome to but -- iceberg environmental scientist Kenneth -- is an American Enterprise Institute.
Smaller why -- you said this is the tip of the iceberg what's next in the green car evolution.
Well not only has the federal government subsidize these cars in terms of the research and development there also subsidizing people in order to buy them.
And then states -- on their own subsidies on average states have about eight subsidies to two electric cars plug in hybrid cars -- hybrids.
It then -- training and direct tax rebates to the ability to use carpool lanes to -- being exempt firms and I air pollution testing and things like that.
You know this is an expense -- the American taxpayer courted the CBO.
Tax credits for these vehicles at a cost of the government to millions through 2019.
At the same time though.
The government would tell you that this is a gut -- -- as -- as your people more in the direction of these cars and that eventually it will take called.
Everybody we'll go electric what is and that.
I say that's a very old song we've heard many times before and has failed every time we've heard it.
I first started writing about this seventeen years ago in 1995 in the LA times -- -- tried to get them to pull the plug on California's electric car mandate.
And they were making the exact same promises that -- made the exact same promises practically since 19100.
All right let's -- electric cars overall because.
I had a a colleague in my come on -- during the day yesterday actually is that look this is quit for Tesla.
You know these are these are -- -- 100000 dollar cars -- sexy they're great a company free market capitalism is gonna lead.
With Tesla and these other guys are gonna fall by the wayside what do you make of that.
Well even -- is beginning a lot of government support.
And how many people you know out there who want to buy 100000 dollar.
Sports cars to get bad reviews by car critics I think only DiCaprio or someone like I mean off the topic I had some Anna he's he's -- yet he's on Prius is in the like all the way along those people like Ed Begley I mean they're great if you actually drive up your -- you stop a couple of blocks away from the red carpet.
-- getting eco car you drive the few blocks to be too big production getting out.
And you drive the -- card back to your little again but they're not so good for actual normal people who have normal budgets -- normal driving.
Do you think can't -- it's really going to be about the hybrids I mean that seems to be where the American public.
Is going would you support more of a hybrid vehicle -- obvious in electric which I don't think you're a fan of.
I don't support subsidies that I call these all subsidy powered vehicles because without subsidies and nobody buys them.
I think hybrids have a real place in the market but even then it's much smaller than most people think and is growing much more slowly affect a lot of people -- buying second hybrids.
After they've had one and found out that there are more expensive to maintain and ensure.
And repair.
So plus people always underestimated the internal combustion engine and its ability get more efficient and more fuel economic non economic over time.
There are new developments where the engine will turn off when -- stop the red lights of things that that can still increase mileage it is that are coming down the pipeline as well so I wouldn't bet on anything beating the internal combustion engine really.
Why do you think that Americans have been -- just on the nose up -- electric cars is that because of the like a mileage -- -- you get out of them -- and charging stations are just on education anyone as a.
Well one they're expensive the volt without subsidies is 40000 dollars even with subsidies it's almost twice the price.
Of a car that's comparable in size and performance a regular gasoline car so number one there expensive number two.
You don't give -- -- back must gasoline prices are very very -- It has to be a -- about five dollars a gallon gasoline before you can look at repaying your initial outlay for the hybrid car unless -- happen beyond -- driver drive many many thousands of miles.
And I think the public just understands that they get better performance -- -- normal vehicles and don't have range anxiety where they're afraid about he's going to die on them.
They don't have to limit the use of air conditioning and heating in the winter in the summer they can go uphill if they need to go upheld and not really worried about having their car battery died prematurely.
If it's -- -- they're not worried about their car starting.
Our basing their problems electric cars -- just aren't the case when your normal.
Yes or -- to finally go Tenet is the -- dead in your opinion.
I think it's it's dead until -- I should say it's on life support that is if the government's willing to keep pumping money into it it'll be alive I can create a false market in almost anything with enough money.
But sooner or later as they say they're gonna run out of other people's money and that's when the -- will go Kenneth thank you very much -- take for me appreciate it.
