By Brad Plumer

As the world’s automakers place larger bets on electric vehicle technology, many industry analysts are debating a key question: How quickly can plug-in cars become mainstream?

The conventional view holds that electric cars will remain a niche product for many years, plagued by high sticker prices and heavily dependent on government subsidies.

But a growing number of analysts now argue that this pessimism is becoming outdated. A new report from Bloomberg New Energy Finance, a research group, suggests that the price of plug-in cars is falling much faster than expected, spurred by cheaper batteries and aggressive policies promoting zero-emission vehicles in China and Europe.

Between 2025 and 2030, the group predicts, plug-in vehicles will become cost competitive with traditional petroleum-powered cars, even without subsidies and even before taking fuel savings into account. Once that happens, mass adoption should quickly follow…

…Other experts caution that falling battery costs are not the only factor in determining whether electric cars become widespread. Sam Ori, the executive director of the Energy Policy Institute at the University of Chicago, noted, “People don’t buy cars based solely on the price tag.”

Consumers may remain wary of vehicles with limited range that can take hours to charge. Even though researchers have shown that battery-electric vehicles have sufficient range for many people’s daily commuting habits, consumer psychology is still difficult to predict. The report does not, for instance, expect electric vehicles to catch on widely in the pickup-truck market…

Continue reading at The New York Times…

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Areas of Focus: Energy Markets
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Energy Markets
Well-functioning markets are essential for providing access to reliable, affordable energy. EPIC research is uncovering the policies, prices and information needed to help energy markets work efficiently.
Electric Power
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Electric Power
As the electric power system faces new pressures and opportunities, EPIC research is working to identify the mix of policies needed to accelerate the global transition to clean, reliable, affordable...
Transportation
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Transportation
Mobility is central to economic activity. Yet, a lack of fuel diversity and continued demand growth have made the transportation industry a major contributor to global pollution and carbon emissions....