EUROPEAN governments are reaching deep into their pockets and plumbing the depths of their imaginations to get electric vehicles out of showrooms and onto the highway. Though the goals of the individual countries are mostly similar — carbon-free fleets in pollution-free cities — many different approaches to making it happen are in place.
While Britain, Norway and Portugal are creating state-of-the-art electric infrastructures for E.V.’s and enticing urban commuters with time-saving driving privileges, buyers of electric and hybrid vehicles in other countries are tempted with monetary incentives like tax credits or rebates.
Currently, 17 of the 27 European Union countries levy carbon dioxide related taxes on passenger cars, and 15 nations offer tax incentives for plug-in vehicles, according the European Automobile Manufacturers’ Association.
The stubborn fact is that the number of electric vehicles in European garages is still modest. The European Union’s ambition is to reduce by half the number of conventionally fueled cars in cities within 20 years and to phase them out entirely by 2050. The incentives and disincentives are meant to get the ball rolling; which program will work best is not yet clear.
By way of comparison, in the United States electric vehicles are eligible for a maximum federal tax credit of $7,500; the battery size determines eligibility and the size of the credit. Some states sweeten the pot further with rebates or lane-use permits for freeways.Continue reading the main story
The Europeans go about it another way. Perks are largely based on the vehicle’s level of carbon emissions, determined by standards linked to Europe’s climate change targets. Whether the vehicle is pure electric, hybrid, natural gas-fueled or propelled by another means is largely irrelevant; the key figure is carbon emissions. Logically, electric cars with zero carbon emissions qualify for the largest incentives.
Here is a sampling of incentives that European governments offer to buyers of environmentally friendly vehicles:
AUSTRIA In addition to tax breaks, owners of hybrid and other low-carbon vehicles benefit from a fuel consumption tax that pays bonuses to passenger cars with low carbon dioxide output. Alternative fuel vehicles, including hybrids, qualify for as much as $1,120 in annual bonuses.
FRANCE In a similar program, a maximum benefit paid for new e-car buyers is $7,000, while buyers of high-carbon-emissions vehicles can pay penalties of up to $3,650. France sees itself as a future leader in e-mobility and has begun construction of 400,000 charging points, expected to be in operation by 2015.
GERMANY Germany’s new post-Fukushima energy plan envisions great things for e-transport, a segment where this auto-producing nation has lagged. One proposal is for a $1.4 billion program of electromobility research and development; rebates are not in the mix. The current five-year grace period, during which private owners of E.V.’s are exempt from the annual motor vehicle tax, is being doubled to 10 years.
BRITAIN E.V. buyers can count on $3,200 to $8,000 in rebates until at least 2016. In London, electric-car drivers save the daily congestion charge (about $13) and enjoy limited free parking. Moreover, exemption from a vehicle excise duty (a car tax based on carbon emissions) could be worth up to an additional $1,500 a year.
LUXEMBOURG Buyers of electric or other low-carbon vehicles qualify for a rebate of up to $4,200. But there’s a catch: the buyer has to sign up to recharge with electricity from renewable energy sources.
NORWAY Norway, and in particular the city of Oslo, is the Shangri-La of electric transportation, though no monetary rebates are offered. The country provides other privileges, including the world’s largest E.V. parking lot as well as free charging. E.V. drivers on their way to work in the morning can use taxi and bus lanes, cruise through tolls without stopping and park free. Buyers are exempted from a wide range of taxes, fees, import duty and congestion charges.
PORTUGAL Portugal’s nationwide public network of 1,350 charging stations was visionary, enabling E.V. drivers to travel anywhere in the country. Buyers of electric vehicles and passenger cars with other exclusively renewable energy systems receive a premium of $7,000 and an additional $2,100 if they scrap their old car, as well as income tax relief of up to 30 percent, or $1,114.
SPAIN A federal fund covers up to 25 percent of an electric car’s retail price, the reduction depending on its efficiency, and regional authorities chip in as much as $8,400. The greatest aid is provided in Andalucia, where 70 percent of the vehicle’s cost could be covered.Continue reading the main story