Green Mountain Times

Rob North, the state representative for Vermont's Addison-3 District, expressed his opposition to electric vehicle (EV) mandates, advocating instead for market demand to drive adoption. He shared these views during an interview.

"I oppose the mandates," said North. "Let the market drive it. If EVs are the best thing, people will naturally buy them. It's costing us a fortune to subsidize it."

The Inflation Reduction Act (IRA) introduced federal subsidies to accelerate EV adoption in the United States. According to a study by Stanford University economists, while these subsidies contributed to reducing climate pollution and supporting U.S. automakers, most benefits went to consumers who would have purchased EVs without incentives. Specifically, 75% of the subsidies were claimed by such consumers, costing taxpayers approximately $32,000 for each additional EV sold. Despite this allocation of resources, the overall benefits—including environmental gains and support for domestic manufacturing—were calculated at $1.87 for every dollar spent by the government.

Further analysis by researchers at the University of California, Berkeley supports these findings. The study indicates that the IRA's EV subsidies have led to measurable environmental benefits and bolstered the U.S. automotive industry. However, it also highlights that most financial incentives were used by consumers already inclined to purchase EVs, raising questions about the efficiency of these subsidies in altering consumer behavior. The researchers suggest that while the subsidies have positive impacts, their design could be optimized to more effectively target consumers undecided about transitioning to electric vehicles.

An examination of government subsidies' impact on EV manufacturers reveals that these financial incentives play a crucial role in shaping the industry's economic landscape. A senior thesis from Liberty University analyzed financial statements and market data, concluding that subsidies and incentives significantly influence revenue streams for EV manufacturers. The research indicates that government support not only helps offset production costs but also encourages innovation and expansion within the sector. However, it also highlights the importance of considering long-term sustainability of such subsidies and their potential implications for market dynamics.

North serves the Addison-3 district in the Vermont House of Representatives. He holds a Bachelor of Science in Electrical Engineering from Duke University and a Master of Science in Electrical Engineering from Rensselaer Polytechnic Institute. Before his tenure in the legislature, North worked in aerospace engineering, including a role at Honeywell designing the Attitude Determination & Control System for Space Station Freedom. He later held positions such as Director of Quality Assurance and Engineering Technical Fellow at Collins Aerospace in Vergennes.