Establishing an electric vehicle (EV) rebate program for the purchase of all-electric and plug-in hybrid vehicles in Oregon would produce economic gains while reducing gasoline consumption by Oregon consumers, claims a new study released today by Keybridge LLC. The rebate would inject an additional $83 million into the state’s GDP through 2030 while making consumers less vulnerable to fluctuating gasoline prices.
The report finds that implementing a rebate for EVs would save Oregon drivers $46 million in gasoline bills over the next five years. Those savings would increase to $212 million through 2030. In addition, more electric vehicles on Oregon’s roads would mitigate the negative effects of high or volatile global oil prices on the state’s economy, acting as a type of insurance policy for household budgets.
The study’s findings were announced during a public hearing before the Oregon House Committee on Energy and Environment. The report’s analysis was presented by Keybridge LLC President and former chief economist on the President’s Council of Economic Advisors Dr. Robert Wescott.
“Plain and simple, EVs cost less to drive a mile down the road than conventional internal combustion engine vehicles,” said study author Dr. Robert Wescott. “The bump in state GDP from increased electric vehicle adoption is fueled in part by the budget relief on households generated by driving electric and saving on gasoline. These savings could be used to purchase other Oregon-produced goods and services.”
“Since a rebate would promote more EV purchases, it would also mean that more Oregonians could take advantage of the $7,500 federal EV tax credit, which would represent an additional inflow to family budgets and the state’s economy,” added Wescott.
Increased fuel diversity in Oregon’s transportation sector also contributes to the state’s long-term energy security, as EVs are powered by domestically produced electricity. The U.S. transportation sector relies on oil for more than 92 percent of its energy, a dependence that endangers national security and hampers economic prosperity. With volatility in the global oil market at record highs, EVs act as an important buffer against oil price spikes.
The study, “Impact of Introducing an Electric Vehicle Rebate on the Oregon State Economy,” was commissioned by Securing America’s Future Energy in partnership with the Electrification Coalition.
Securing America’s Future Energy (SAFE) is a nonpartisan organization that aims to reduce America’s dependence on oil and improve U.S. energy security to bolster national security and strengthen the economy. SAFE advocates for expanded domestic production of U.S. oil and gas resources, continued improvements in fuel efficiency, and in the long-term, breaking oil’s stranglehold on the transportation sector through alternatives like natural gas for heavy-duty trucks and plug-in electric vehicles. In 2006, SAFE joined with General P.X. Kelley (Ret.), 28th Commandant of the U.S. Marine Corps, and Frederick W. Smith, Chairman, President, and CEO of FedEx Corporation, to form the Energy Security Leadership Council (ESLC), a group of business and former military leaders committed to reducing U.S. oil dependence.
The Electrification Coalition is a nonpartisan, non-profit group of business leaders committed to promoting policies and actions that reduce America’s dependence on oil by facilitating the deployment of electric vehicles on a mass scale. The members of the Electrification Coalition are leaders of companies representing the entire value chain of an electrified transportation system.
