How to Drive Broad Adoption of Electric Cars

From the popular media these days, electric vehicles are all the rage. Nary a week passes without the president of the United States cutting a ribbon at a new battery maker or EV facility.

So is the battle won? Is it now just a matter of a short time until we can all go to the showroom and drive away in our gas-free, pollution-free, high performance car?

Well, not quite.

Ask most American elite about hybrid cars and you will likely hear them say how amazing it is that the hybrid has been so successful. Ask the marketing team at Toyota and you will hear the same thing. And that should not be surprising -- after all, a decade ago hybrids could be measured in the hundreds, today there are millions of them.Climate Week Logo

But ask a climatologist, or a balance of trade economist, and they will tell you that they have not yet seen hybrids make any impact on the emissions profile of the U.S., or on the trade deficit, roughly half of which is accountable to oil importation. How come? Because though there may be millions of hybrids on the road, there are still hundreds of millions of cars in the U.S. -- roughly 250 million to be precise.

The lesson is this: We should not be distracted by the hoopla, we should focus on a single criteria -- and that criteria should be, are we moving the needle on oil use and attendant emissions or not? In order for us to answer that question in the affirmative a decade from now, several things have to change.

First, we need to move from a “hybrid" mindset, in which double-digit efficiency gains are celebrated, to a culture that says no amount of oil is acceptable.  That means going all-electric.

Second, we need a much greater rate of penetration. Rather than hybrids, think iTunes. Ask any group of young people today when they last bought a music CD and you will likely get a quizzical look. A decade ago, acquisition of music was synonymous with CD purchases. What happened? A more convenient and less expensive platform was created -- and people migrated to it en masse.

That is what we have to do with cars, and that is what Better Place is building in several countries around the world. With the current set of incentives in the U.S., electric cars should have no trouble doing what hybrids did -- gaining 2 percent market share in a decade.

Next Page: Making electric cars less expensive.