Electric Cars Vs Microeconomics

Electric cars are more economically efficient than their gasoline counterparts. Beginning in 2000, the price of gasoline has reached record prices (Hawaleshka). Higher costs raise a problem, as 71% of Americans report they do not want to pay more gasoline taxes (Leiserowitz). But owning and maintaining an electric vehicle (EV) can provide a solution, saving vehicle owners money that would have been spent on gas. Paying for fuel in an electric car will cost the owner three times less than a 25 mpg vehicle running on gas priced at $2.75 per gallon (Kliesch, Electric). One electric car, the Honda Insight, “gets 68 miles per gallon on the highway… 25 miles per gallon more than is gasoline-fuelled equivalent” (Hawaleshka). That highway driving would

Admittedly, one semi-electric car, the Chevy Volt, costs $69 more than gas-engine car per month, but that price is balanced out by the $200 monthly savings in running primarily on electricity instead of fuel (Pope). Also, a government subsidy of electric cars will lower their price (Chambers). Before they’re even sold, EVs conserve funds in the production because the way they’re structured, the fuel cell stack is shorter and doesn’t have to carry as much hydrogen

Modern Americans are looking for eco-friendly car services, and electric or semi-electric hybrid vehicles could provide just that (Motavelli). Indeed, “J.D. Powers and Associates reports that 35% of car buyers are interested in hybrid cars and 85% of hybrid car owners would pay more for their cars" (Moore). To meet consumer demand, start-up car production companies like Aptera and Visionary Vehicles are fighting for government sponsorship of their own electric vehicles (Grier). The larger companies with firmer grips on the EV production process sell out quickly, like the first version of the Nissan Leaf that was off the market 6 months before sales were open to the public (Gerdes). Similarly, the Indian electric car Tata Nano sold 200,000 of its kind in the first 16 days on the market