ARE ELECTRIC CARS REALLY BETTER FOR THE ENVIRONMENT?

Anyone who followed markets even just a little bit in 2020 would have noticed the meteoric rise of electric car manufacturer Tesla’s stock price. Much has been made of this historic rise in value, and you can find analysts on both sides of the debate. The purpose of this article however, is not to discuss the value of the company’s stock. This article is all about the product behind the stock price. The electric vehicle.

Ever since EV’s began hitting the roads in the early 2000’s there has been a heated debate as to just how much better for the planet they are, if at all. Most critics of EV’s base their arguments in two areas; The overall environmental impact of battery production and disposal, and the production of methods of the electricity powering the cars. Let’s take a look at the merits of those two arguments.

BATTERY PRODUCTION

Let us start by conceding the facts as they stand. Electric vehicles and the batteries inside them do in fact produce more carbon emissions during production than their internal combustion counterparts. From the mining of the rare earth metals required to produce the batteries as well as the production of the cells themselves the process is certainly not the best. However, the country of origin can make a large difference in the amount of gases produced. The International Council on Clean Transportation found that in China the manufacture of EV’s in produced 60% more CO2 than comparable ICEV manufacturing. BUT, and it’s a big BUT if the Chinese manufacturers were to adapt American or European standards emissions could be cut by as much as 66% putting them on par with fuel burning competitors. As it stands worldwide it is safe to say that the production of an EV produces slightly more greenhouse gases than production of an internal combustion vehicle.

ENERGY SOURCE

This is the area where the debate gets the most heated because the answer can vary widely based on where the electric vehicle is being driven. Most studies concede that an EV powered exclusively by energy produced from coal burning plants will have a similar CO2 emission total to an oil burning car. Put in practice what that means is a car driven in the American midwest may end up coming close to the total emissions of an internal combustion engine, but an EV driven in California where much of the electric power comes from hydro and other renewables will be significantly less. A study done by the CarbonBrief illustrates this relationship across several countries showing the relationship between energy source and overall carbon emissions.

CONCLUSION

For the time being it is extremely unlikely that this debate will be settled. Where the data is undeniable (at least in our opinion) is in what the future holds. As more and more electrical grids move away from fossil fuels and towards renewable energy the environmental advantage of electric cars will continue to grow. Therefore we think it is safe to say that electric vehicles represent the future of automobiles. Our opinion is backed up by almost every major car manufacturer. As 2021 begins Tesla is far from alone in the production of EV’s. The automakers of the world have recognized the need, and perhaps more importantly the demand for electric vehicles and are continually rushing new models to market at a never before seen pace. In addition to private companies many of the worlds governments are adding increased restrictions to fuel burning vehicles with some adopting laws that will outlaw the sale of such cars at a date in the future. While the world waits to see what a collective difference a move to EV’s can make, we can’t help but think it will be a critical component of the overall fight against climate change