This white paper quantifies the costs, benefits, and appropriate government funding associated with the transition to all passenger zero-emission vehicles (ZEVs). It assesses the key government support programs needed, for how long the need continues, and how public expenditures compare to societal benefits as the ZEV market develops. The work also identifies opportunities to phase down government expenditures, including shifting to polluter-pay programs, adopting long-term policies with minimal outlays, and transitioning costs to the private sector.
The analysis supports the following conclusions:
- Sustained funding is critical to growing the early ZEV market.
- The societal benefits of ZEVs far outweigh the costs.