Quote:
Originally Posted by aerohead
I'll presume that psychology is part of the tax subsidy calculus.
Poor people want what 'wealthy' people have. A carrot incentivizes wealthy to be early adopters. When their lease expires, or when trading in for a new car, the used cars become a highly-discounted pre-owned vehicle, now within reach of those lower in the pecking order. Every few years the process repeats itself, and finally, those of the lower echelons have access to a 'wealthy' persons car.
The whole chain of events involves cars with zero-carbon potential, something the Corolla can't offer.
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The process of the less wealthy eventually having access to greater technology and resources is true of most things.
I understand that the point of the credit is to pay lip service to a tribal constituency and not to actually solve a problem. If a problem was being addressed, it would be clearly stated, along with an analysis of how the proposal would address that clearly defined problem. It would provide a way to measure progress.
Although it's impossible to know, there's a chance that these tax credit schemes delayed EV development and adoption because they introduce so much uncertainty into the market, and remove incentive to invest long term considering the expiration of the subsidy. Those who exhaust their credits then find themselves at a massive disadvantage to those who have not.