Electric Vehicles: Cost Savings Perspective (2022 Update)

With transportation accounting for the largest portion of US annual greenhouse gas emissions, electrifying the sector is a critical step to reducing U.S. emissions at scale. In a previous article, we calculated the major cost savings associated with EV ownership but dissected existing barriers to widespread EV adoption such as high upfront costs and range anxiety. Given unprecedented shifts in the transportation sector during the pandemic and post-IRA passage, this article presents the updated economic calculus of substituting an ICE vehicle for an EV.