This is what it might take to get everyone to stop driving gas cars
Rebates and tax credits might need a tweak to incentivize consumers to fully switch to electric vehicles – here’s what a new study found.
Electrek spoke with Brad Greenwood, professor of information systems and operations management at George Mason University’s School of Business, about his recent research, which found that EV subsidies rolled out in China – similar to the US’s new $7,500 EV tax credit – incentivized people to buy EVs as second vehicles, but they kept buying and driving gas cars as well.
Here’s what Dr. Greenwood found in his research about what subsidies need to do in order to get gas vehicles off the streets – and for drivers to switch to fully electric.
Electrek: You recently conducted a study on EV subsidies as incentives for people to switch from gas to electric. Can you tell us a bit about that?
Brad Greenwood: The goal of the paper was to examine how EV subsidies affect both EV markets and traditional vehicle markets. There’s a lot of evidence that financial subsidies can stimulate EV purchasing, but we don’t know how they influence the purchase of gas cars. To the extent that the stated goal is the cannibalization of the treated market, it’s important to examine this question.
Electrek: Did the incentives work, and how, exactly?
Brad Greenwood: Well, it depends. Like a lot of other studies, we see that EV sales rise sharply when financial subsidies are offered. This, of course, makes sense, because you’re essentially lowering the price.
The concern is that the market – that is, both EVs and gas cars – expands overall, and there’s no observed decrease in traditional vehicle purchasing. Instead, it looks like consumers are either buying an additional vehicle, or buying a vehicle when they otherwise would have relied on alternate transportation options.
Electrek: Is there a way for incentives to be more effective to get people to fully switch from gas to electric cars?
Brad Greenwood: What’s pretty striking is that we see that the impact of the subsidy is strongest in cities with really poor air quality. But consumers don’t react heterogeneously in cities with higher fuel prices. That’s surprising, because consumers are reacting to a monetary incentive – the subsidy – but they don’t react more when prices for operating a traditional vehicle are higher – that is, when there’s a real financial advantage to having the EV.
Electrek: What do you think would make subsidies more effective?
Brad Greenwood: That’s a matter of speculation. What appears to be critical, though, is mandating abandonment of a gas car when purchasing the EV – that is, the gas car needs to be traded in, at least in the emerging stage of the market. We’re obviously going to need a lot more research to substantiate the factors that increase or decrease the efficacy of subsidies, but that’s the direction we’re pointed in now.
Brad Greenwood is a professor of information systems and operations management at George Mason University’s School of Business with expertise regarding the consequences of innovation and the intersection of modernization, business, technology, and social issues.
Read more: This is where electric vehicle adoption is headed between 2022 and 2025
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Environment
Baidu- and Geely-backed JiYue brand unveils ROBO X EV that goes 0-100 km/h in under 1.9 sec
JiYue, a Chinese EV brand focused on delivering all-electric “robocars” to the masses, has unveiled its latest model, and it’s quite a deviation from its previous EVs—but in the best way. Earlier today, JiYue launched the ROBO X supercar, designed for high-speed racing. By high speed, we mean 0-100 km/h acceleration in under 1.9 seconds. My mouth is watering.
JiYue has only existed since 2021, when parent tech company Baidu announced it was expanding from software development into physical EV production, joining forces with multinational automotive manufacturer Geely.
The new “robotic EV” marque initially launched as JIDU with $300 million in startup capital before garnering an additional $400 million in Series A funding, led by Baidu, in January 2022.
In August 2023, Geely took on a larger role in JIDU alongside a greater financial stake as the brand reimagined itself as JiYue, inheriting the JIDU logo and its flagship model, the 01 ROBOCAR.
In December 2023, Baidu and Geely unveiled a second model called the JiYue 07. It was born from JIDU’s ROBO-02 concept, which debuted in 2023 and was designed to compete against the Tesla Model 3 in China.
The 07 finally launched in China earlier this year with 545 miles of range. With an all-electric SUV and sedan on the market, JiYue has unveiled an exciting new entry in the form of a performance supercar called the ROBO X. Check it out:
JiYue’s new ROBO X EV is available for pre-order now
JiYue showcased its new ROBO X hypercar in front of the crowd at the 2024 Guangzhou Auto Show earlier today. Similar to previous models but with a unique spin, JiYue described the ROBO X as an AI smart-driving supercar that, for the first time, blends artificial intelligence and autonomous driving into a high-performance, race-ready EV.
When we say “high performance,” we mean a quad motor liquid-cooled drive system that can propel the ROBO X from 0 to 100 km/h (0 to 62 mph) in under 1.9 seconds. JiYue called the new ROBO X a “performance beast” with “the perfect balance of excellent aerodynamic performance and high downforce.” JiYue CEO Joe Xia was even bolder in his statements about the ROBO X:
For the next 20 years, the design of supercars will bear the shadow of Robo X. This is the best design in the history of Chinese automobiles today, and it is a landmark presence.
Fighter-style airflow ducts bolster the EV’s aerodynamics, efficiency, and overall posture. Per JiYue, the two-seater ROBO X is expected to deliver a maximum range of over 650 km (404 miles).
The new supercar features falcon-wing doors, a carbon fiber integrated frame, and a professional racing HALO safety system offering 360° of support. The interior features an AI smart cockpit with SIMO real-time feedback to give drivers an immersive racing experience.
Furthermore, JiYue said the vehicle will utilize parent company Baidu’s Apollo self-driving technology, which could make it the first electric supercar to apply pure-vision ADAS technology that enables track-level autonomous driving.
Following today’s unveiling of the ROBO X, JiYue has officially opened up pre-orders in China for RMB 49,999 ($6,915). That said, reservation holders will need to be patient as JiYue shared that it doesn’t expect to begin mass production of the ROBO X until 2027.
What do you think? Will people be talking about the ROBO X for the next 20 years?
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This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes the launch of the Lectric XPedition 2.0, Yamaha e-bikes pulling out of North America, LiveWire unveils an electric scooter concept, PNY readying its cargo e-scooters for pilot testing, Royal Enfield’s first electric motorcycle, and more.
The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.
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Here are a few of the articles that we will discuss during the Wheel-E podcast today:
Here’s the live stream for today’s episode starting at 9:30 a.m. ET (or the video after 10:30 a.m. ET):
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Crude oil futures were on pace Friday for loss for the week, as a supply gut and a strong dollar depresses the market.
U.S. crude oil is down more than 2% this week, while Brent has shed nearly 2%.
Here are Friday’s energy prices:
- West Texas Intermediate December contract: $68.56 per barrel, down 14 cents, or 0.2%. Year to date, U.S. crude oil has shed about 4%.
- Brent January contract: $72.36 per barrel, down 20 cents, or 0.28%. Year to date, the global benchmark has lost nearly 6%.
- RBOB Gasoline December contract: $1.99 per gallon, up 0.46%. Year to date, gasoline has fallen more than 1%.
- Natural Gas December contract: $2.70 per thousand cubic feet, down 2.98%. Year to date, gas has gained more than 4%.
The International Energy Agency has forecast a surplus of more than 1 million barrels per day in 2025 on robust production in the U.S. OPEC revised down its demand forecast for the fourth consecutive month as demand in China remains soft.
A strong dollar also hangs over the market, as the greenback has surged in the wake of President-elect Donald Trump’s election victory.
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