In recent times we have seen the emergence of demand for energy efficient and hybrid vehicles, catering to the consumer push to reduce the carbon footprint from petrol fuelled vehicles. Most recently, yet long behind other major western countries, we’ve seen the arrival in Australia of ‘commercial’ Electric Vehicles (EVs) such as the Tesla Roadster and the Mitsubishi Miev.

The obvious downfall of these new electric cars is their price – rivalling that of luxury cars – ranging from A$70,000 to A$130,000. Although they are meant to cost a third less to operate, the initial outlay may be too far a stretch for the average consumer. The good news is that with the advancement of new technologies, prices tend to drop over time. If you look at plasma TVs a decade ago, you would have not believed the prices you see today.

So what will drive the price of these and future EVs down? Will there be a time when most cars run on electricity? If we can produce EVs now that produce zero emissions when running and feel like a ‘normal’ petrol fuelled car, why are they not widely available now at a reasonable price?

Lithium Batteries

One of the main reasons that EVs are pricey is due to the high price tag of the batteries. Today, one of the hold ups to the mass production of EVs is the availability of lithium batteries. Although the demand is very high, production constraints mean batteries are still scarce. Lithium batteries are also used in computer laptops, mobile phones, and other electrical devices. It’s not that we don’t have enough lithium deposits in the earth; it’s that we haven’t yet been able to take it out of the ground efficiently.

The second main reason is that Australia, in particular, is far behind the rest of the world in terms of being a nation that widely promotes and encourages its people to use more sustainable forms of vehicles.

Incentives

Other countries such as the United States, Canada, Denmark, and UK have adopted some strong tax incentives and rebates for those purchasing EVs. Additionally, other incentives on offer include priority lanes on highways and priority parking. Below is a summary of the kind of incentives available around the world - provided by www.myelectriccar.com.au.

Note the lack of incentives on offer in Australia! The only ray of hope we have in Australia at the moment is the new Cleaner Car Rebate of $2000 proposed by the Gillard government. If the Labor government is retuned, that would be $2000 to trade in your old pre-1995 vehicle – for scrappage – and purchase a new more energy efficient vehicle. There are currently an estimated 2 million pre-1995 vehicles on Australian roads and the ALP hopes to see 200,000 pre-1995 vehicles taken off the road between 1 January 2011 and the end of 2014. The ALP says that, over a decade, the benefits would be “a reduction in carbon dioxide emissions of 1 million tonnes and a saving to motorists of $344 million in fuel costs”.

As you no doubt notice, this is still far less than many other nations that have already implemented similar initiatives but with much high incentives for drivers. Why is Australia so far behind? We are the biggest per capita polluter on the planet and yet we have one of the softest stands in the world when it comes to enticing drivers to switch to more environmentally efficient vehicles.

The UK, Spain, Israel and countries all over Europe have massive plans to open up thousands of electric car charging stations with great purchasing incentives. Denmark has a punitive 200% tariff on new cars (so that a $20,000 vehicles costs $60,000) but no tax at all on electric vehicles. Better Place is teaming up with the Danish government and the biggest Danish power company to roll out the infrastructure, while infrastructure development is already underway in Israel.

Cash for Clunkers

In Australia, our government intends to adopt this “cash of clunkers” scheme that will be funded through the redirection of funds from Solar and CSS Flagship programs and Renewable Energy Bonus Scheme. Here we are seemingly taking a baby step forward, but we are really taking two massive steps back. Just as we were progressing in one area that has gained worldwide recognition (solar research), we decide to cut it off and invest in a very soft scheme, not comparable to our international counterparts.

Will this help fuel our interest for buying these expensive electric vehicles? Maybe for some, but probably not for most. We need stronger incentives in Australia for drivers if the electric vehicle industry is to “move forward”. It’s fantastic that we have got this far in terms of mass production but car companies will not adapt if policies aren’t in place to allow for a smooth transition into the zero or low emissions space.

Moving Forward

One way you can take action is to switch your car to electric or simply to be more energy efficient. Some companies in our directory offer these services such a fitch catalyst, 85 ethanol, and see our Transport and Energy sections for more companies that can help.

Another way to take action is to demand that our government gives greater incentives for purchasing electric vehicles. Write a letter or take to the streets with an action group, this week you can join thousands of Australians at the Walk Against Warming, with more than 20 locations there's bound to be one near you.

Also see these related articles:

• Vote with your feet – Walk Against Warming
• Ethanol: The Fuel of the Future
• Driving Peace of Mind

Other resources:
My Electric Car website
Labor's cleaner car rebate to scrap inefficient cars
Labor's new emission standards for cars

Written by Leor Shavel

Image Credit: Adventures of Pam & Frank via Flickr Creative Commons