Post-coronavirus economic recovery requires EV adoption
The next federal stimulus bill should include three objectives to create a healthier economy: more access to EV charging stations, electrification incentives and support of grid-level demand.
The following article was originally published by Chris George and Jan Maceczek at Smart Cities Dive on April 6, 2020.
In just under four months, the novel coronavirus (COVID-19) has left the global economy wrecked, upending countless lives in its wake.
The economic effects of the virus are staggering and expected to get worse. U.S. stock indexes have dropped by more than 20%, erasing all the gains made over the past four years, and unemployment filings are at a historic high as jobless claims see a 3,000% jump since early March.
The government had put the U.S. in a precarious position when entering this battle: over a trillion dollars in deficits, and an interest rate of nearly zero. With immediate actions triggered to little effect, Congress recently passed a $2 trillion stimulus package (phase three of the government's relief funding) and is already prepping for phase four.
Proposals have been looking to go beyond payments for small businesses and individuals to also reshape infrastructure spending and Social Security benefits. Infrastructure investment is often cited as a necessary component of any fiscal stimulus plan. Critically, infrastructure spending can directly address some of the root causes of a pandemic. Additionally, research is clear that an increase in public capital directly leads to an increase in economic output. Upgraded public infrastructure also can facilitate consumer and produce goods more efficiently.
Several initiatives, including the improvement of public transportation, or federal investment in public-private partnerships (P3s), achieve both goals. Electrifying the transportation industry is one of these initiatives. The increase in electric vehicle (EV) adoption across the automotive industry has become a central piece of the clean transportation discussion.
While electrification has made huge headwinds in the last few years, many challenges remain, notably the lack of scale of charging infrastructure for individuals as well as fleets. Rapidly advancing the adoption of EVs should be one of the major components of the next stimulus package (seeing as the sector was neglected in package three). The investment supports economic activity while also improving the health and well-being of Americans and the cities we call home.
The public health benefits of transitioning to EVs, specifically a reduction in tailpipe emissions and particulate matter, are well documented. They range from reduced asthma hospitalizations to improved sleep habits to a reduction in respiratory illnesses, the importance of which we see now as attacks respiratory systems. The importance of air quality is perhaps now clearer than ever, as coronavirus symptoms worsen in cases with compromised respiratory symptoms, amongst other conditions.
We already know how to speed up the adoption of EVs. The solutions are both numerous and complex, requiring strategic investment in opportunities that will provide the most impact. Here are three objectives the next federal stimulus bill can achieve, if it allocates appropriate resources to truly creating healthier and better economies.