FYI In Brief: The Energy Economics of EVs And ICEVs

The Biden Administration’s recent tightening of the Corporate Average Fuel Economy (CAFE) Standards will force car manufacturers to rapidly increase EV sales to be in compliance. If left in place, such standards will cause a rapid transition from a gasoline-based vehicle fleet to a battery-based vehicle fleet.

To examine the effects of such a transition in energy economies, the Energy Policy Research has conducted an analysis of the CAFE rules implications on potential wait times at charging stations over the next 25 years. This briefing gives an overview of this topic and provides historical context, a discussion of key regulatory tools, a formal analysis of potential wait times in the absence of sufficient charging facilities, and concludes with a set of recommendations for policymakers.