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I don't think I'd say it's gone horribly wrong, just that something with a motor is more efficient at using energy it has onboard than something with an engine. From the point of view of the EPA ratings someone isn't going to factor in average electricity generating efficiency just like they don't factor in gasoline production efficiency. Neither or those are what the EPA mpg rating entails. Someone could do that, but in that context what's more appropriate is Carbon emissions per mile, which I mentioned earlier in the thread.
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