America Is Losing the World's Biggest Manufacturing and Climate Race: Electric Vehicles

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America Is Losing the World's Biggest Manufacturing and Climate Race: Electric Vehicles
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Today, America is losing the most world's important manufacturing and climate protection opportunity - Electric Vehicles. Congress must pass far more ambitious tax credits and other policies to jumpstart US production and purchase of EVs, especially higher credits for cheaper EVs.

Suppose a Presidential candidate proposed a policy that would produce the following benefits: a resurgence of U.S. auto industry production and the creation of thousands of new, high-paying manufacturing jobs; cleaner air, lower health care costs, and a huge reduction in the largest source of American greenhouse gas emissions; lower consumer costs of owning and operating vehicles; and the elimination of dependence on foreign oil.

of all manufacturing globally, up from just 8% in 2000, while the US share dropped from 22% to 15% over the same period.from the Progressive Policy Institute urges Congress to jumpstart domestic EV production and sales by passing robust consumer and manufacturer incentives.

, encouraging the sale of more affordable electric vehicles in large numbers. This “reverse scale” credit could be structured as follows: $7,500 credit for vehicles priced under $35,000; $5,000 for those under $50,000; $2,500 for those under $75,000. Congress should also require that going forward all new federal government vehicles must be US-made EVs for most purposes . The federal government could also raise or restructure Corporate Average Fuel Economy standards for an added push toward EVs. And in order to gain the full reductions in air pollution and greenhouse gas emissions, Congress will need to make sure that the electricity sector relies on increasingly clean energy sources through a national low-emissions electricity standard.

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