Labour’s electric vehicle ‘revolution’ would come at significant cost to the general public
25 March 2021
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Lifestyle Economics
15 November 2024
Responding to Labour’s plans for an “electric vehicle revolution”, Andy Mayer, Chief Operating Officer at free market think tank the Institute of Economic Affairs, said:
“The most efficient way to encourage the transition to low carbon transport is with a carbon tax, applied economy-wide, at a level consistent with international peers. Complex incentives targeting specific technologies tend to distort markets and encourage rent-seeking, while subsidies cater to well-off early adopters at significant cost to the general public.
“Governments have a terrible record when it comes to picking winners, particularly in energy and transport. It is far better to leave these matters to investor risk and consumer choice, allowing a consistent price for carbon to create a level playing field with current technology. We should not be subsidising manufacturers, many of whom will fail, and many of whom do not need the subsidies to take the risk in the first place.”
Notes to Editors
Contact: Emily Carver, Head of Media, 07715942731
IEA spokespeople are available for further comment.
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems. The IEA is a registered educational charity and independent of all political parties.
“The most efficient way to encourage the transition to low carbon transport is with a carbon tax, applied economy-wide, at a level consistent with international peers. Complex incentives targeting specific technologies tend to distort markets and encourage rent-seeking, while subsidies cater to well-off early adopters at significant cost to the general public.
“Governments have a terrible record when it comes to picking winners, particularly in energy and transport. It is far better to leave these matters to investor risk and consumer choice, allowing a consistent price for carbon to create a level playing field with current technology. We should not be subsidising manufacturers, many of whom will fail, and many of whom do not need the subsidies to take the risk in the first place.”
Notes to Editors
Contact: Emily Carver, Head of Media, 07715942731
IEA spokespeople are available for further comment.
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems. The IEA is a registered educational charity and independent of all political parties.
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