Barry Barton “Electric Vehicles, Conventional Vehicles and Climate Change Policy.”
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Transcript of Barry Barton “Electric Vehicles, Conventional Vehicles and Climate Change Policy.”
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Barry BartonCentre for Environmental, Resources and Energy Law (CEREL)
Electric Vehicles, Conventional Vehicles, and Climate Change Policy
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EV New Presentation
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Research on transport law and policy within the
Energy Cultures programme:
• B Barton and P Schütte, Electric Vehicle Policy:
New Zealand in a Comparative Context (CEREL,
2015), available www.waikato.ac.nz/cerel
• VTS Purusram, “Cycling Safety in New Zealand:
An Analysis of Law and Policy” (LLM thesis,
University of Waikato, 2015).
• B Barton and P Schütte, “Electric Vehicles:
Promoting Improvements in Transport” [2016]
New Zealand Law Journal 31-35.
• B Barton, “What to Look for in Electric Vehicles
Policy” www.pureadvantage.org (2016).
• B Barton, “Electric Vehicles Policy Announcement:
Strengths and Weaknesses” [2016] New Zealand
Law Journal (forthcoming).
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EV New Presentation
Ministry for the Environment, New Zealand’s Climate Change Target (2015).
Road transport emissions are up 69% from 1990.
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CO2 emissions from the New Zealand vehicle fleet
From NZ Ministry of Transport Annual Fleet Statistics 2014, p 11.
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• Lower GHG emissions
• Less air pollution and noise (in some circumstances)
• Energy security and efficiency
Advantages of EVs from a policy point of view:
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• Price
• Limited number of models
• Range limitations
• Charging facilities
• Uncertainty and unfamiliarity
• Little recognition of their benefits and lower adverse effects compared to ICVs.
Barriers to the widespread uptake of EVs:
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Effect on GHG emissions if the target is reached:
• GHG reductions from transport would be about 151 kt, ~1.1% of projected national transport sector emissions.
• About 0.28% of NZ’s total national GHG emissions in 2013.
(Assuming that plug-in hybrid EVs actually run on electricity.)
Policy announcement of the Minister of Energy & Transport, 5 May 2016
NZ has about 3,300,000 light vehicles.
NZ adds about 250,000 new light vehicles a year.
• A target of doubling the number of EVs every year to reach 64,000 by 2021, about 2% of current light vehicle fleet.
This is a non-government estimate. No analysis was given to explain the target or the measures that might support it.
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Polic
y a
nno
uncem
ent
of 5
May 2
01
6• Extending Road User Charge exemption
on light EVs until they make up 2% of fleet (or until 2021).
• RUC for heavy EVs until they make up 2%.
• Bulk vehicle purchase programme.
• Coordinating to support growth of the charging network.
• Information and promotion campaign.
• Contestable fund $6 m pa to support low emission vehicle projects.
• Allow EVs into bus lanes and high-occupancy lanes.
• Review tax depreciation rates, calculation of FBT, and ACC rules.
• A subsidy.
• In 2014, NZ had 68 EV buses and 1 truck.
• Likely to be effective.
• Network important. It is being delivered by private enterprise ahead of demand.
• Likely to be effective if it is carefully aimed at what changes purchase behaviour.
• Objective uncertain. Good if not just EVs.
• A common incentive overseas, usually with significant subsidies.
• Likely to be important, but work has not started.
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• Price does matter.
• Price support measures usually work, but they need to be well designed.
• Measures that reduce the price immediately work better than ones that affect the long-term total cost of ownership.
• Price support measures need to make a substantial difference to the gap between ICV prices and EV prices.
• Long-term policy settings are needed in order to promote investment certainty.
• The equity problem.
• The RUC exemption subsidy.
Price and subsidy: what we know from the research
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• Fuel efficiency standards are long-established in most countries.
• Australia and New Zealand are the main exceptions.
• They are efficacious; they work well to change the performance of a country’s vehicle fleet.
• They alter the composition of the whole vehicle fleet.
• They support EVs.
Fuel efficiency measures:
what we know from the research
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Fuel efficiency measures
Source:Miller and Façanha (2014).
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• In the US, federal tax credits for the purchase of EVs may have zero impact because of the pressure that CAFE standards put on vehicle suppliers.
• In the UK, GHG emissions legislation has been ‘decisive’ and ‘a key driver’ in EV uptake.
Fuel efficiency measures
Sources: US Congressional Budget Office (2012); Element Energy (2013).
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• National Energy Efficiency and Conservation Strategy.
• The process for a new NEECS is under way.
• The NZ Emissions Trading Scheme affects vehicle use, not purchase, and only very slightly.
Fuel efficiency measures
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Advantages of EVs
MBIE, Importer Margins, 2 July 2016.
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One policy measure that would do these things is the feebate system.
• Feebates have a good track record internationally.
• Used in France and other countries.
• Suitable to the New Zealand.
• Complementary to the NZETS.
We need policy measures that will:
(i) address the EV price problem and
(ii) promote fuel efficiency through the whole vehicle fleet.
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From: German and Meszler, Best Practices for Feebate Program Design & Implementation, 2010
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• Help development of charging facilities
• Purchase EVs for their own fleets.
• Require contractors to use high-performance vehicles (eg as to emissions, renewable transport energy).
• Push central government on climate change, air quality, and fuel efficiency.
• Carry on with work managing transport demand and modes
What can local government do?
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• Settlement patterns and urban form.
• Public transport and active transport.
• Biofuels, hydrogen, fuel efficiency, electric vehicles.
Avoid-Shift-Improve
The different components of transport policy.
EV policy is vehicle policy.
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• Research provides insight to choose policy measures.
• The international research shows that in NZ we are only partly on the right track.
• We need more research on:
o Whether the RUC exemption is an effective incentive.
o Whether the RUC exemption subsidy plus bus lane privilege will be positive in their effect on attitudes to EVs and EV measures.
o What are the key information and perception needs for potential EV purchasers.
Conclusions
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Co-funders:Our main funder: