Why Are New Energy Vehicles Good for the Economy?

The growing popularity of new energy vehicles is often seen as a green-environment initiative. Today, there are more than 1.6 million new energy-electric vehicles on the road around the world.

New energy vehicles offer some advantages to the economy, which is one of the reasons why many governments favor new energy electric vehicles. Although the new energy electric vehicle market is still in its infancy, it has the potential to transform various industries and economies around the world.

Pollution from cars, buses, planes, railroads, and ships severely damages public health and the global climate.

Other greenhouse gases such as volatile organic compounds (VOCs), particulate matter (PM), nitrogen oxides, and carbon dioxide are pollutants in vehicle exhaust. Regular inhalation of these substances can have dire effects on human health.

Particulate matter (PM), composed of tiny respirable particles 30 times smaller than human hair, is responsible for at least 1 million premature deaths in the United States each year.

According to estimates from the Minnesota Pollution Control Authority (MPCA) and the Minnesota Department of Health (MDH), ozone and particulate pollution from all sources kills 2,000-4,000 people in Minnesota each year.

Thankfully, one of the multi-pronged approaches to decarbonizing the economy and reducing greenhouse gas emissions is the new energy vehicle, which has virtually no exhaust emissions.

Driving only one new energy vehicle on the road can reduce carbon dioxide emissions by an average of 1.5 million grams per year.

The largest contributor to U.S. greenhouse gas emissions in 2016 was transportation, emitting 19 billion tons of carbon dioxide annually, displacing the power industry and energy production after successive dominations.

Because the large number of lithium-ion batteries that power cars require a lot of resources and energy to build, producing new-energy EVs will result in higher greenhouse gas emissions than producing regular gasoline-powered cars.

For example, building a mid-sized new energy electric vehicle with a range of 84 miles produces 15% additional emissions.

This may already start to have an impact on new energy-electric vehicles in the next 5 to 10 years.

In this context, new energy electric vehicles offer great potential for reducing greenhouse gas emissions.

Even taking into account the mining and battery manufacturing at the beginning of their life cycle, NEVs produce fewer greenhouse gas emissions than ICE vehicles over their entire life cycle.

The entire United States stands to benefit greatly from electrifying transportation infrastructure. Over time, new energy-electric vehicles will become more climate-friendly.

Production, transmission, and distribution in the United States now have a capacity factor of less than 50 percent.

The method was created to guarantee that the utility can meet the maximum annual peak demand that lasts only a few hours each year.

The idea is akin to building a sizable NASCAR track that would be fully utilized during the annual event, but completely underutilized the rest of the time.

By generating more electricity from existing facilities and sending more electrons through substations, one can take advantage of the low utilization rate of the system and save on the cost of new energy electric vehicles.

When done during off-peak hours, it does not increase the cost of the distribution system, but only reduces the operating cost of the power station.

This all suggests that NEVs that charge overnight at home slightly reduce everyone's electricity bills.

Since a NEV consumes an average of nearly 60,000 kWh over its lifetime, and the average U.S. grid charges about 5.5 cents per kWh, this new distribution and transmission revenues total more than $3,500.

The advantages of new energy electric vehicles extend well beyond the grid and actually benefit the state's general economic situation.

Importing 8.47 million barrels of gasoline per day in 2021, the U.S. continues to play an important role in keeping domestic and global markets balanced.

Transportation accounts for about 28% of the country's total energy demand and 72% of oil consumption.

The use of more energy-efficient vehicles, such as hybrid and electric models, has boosted the U.S. economy and helped diversify the fleet.

Many fuel sources are used to generate electricity for the electrified portion of the transportation industry. All of this adds to our country's energy security.

Battery electric vehicles and plug-in hybrid electric vehicles can run entirely on electricity generated in the United States from the following sources:

Solar,

Hydro,

Wind,

Coal,

Natural gas,

Nuclear energy.

The entire transportation shift will help economies thrive and ease the burden of importing oil from other countries.

Due to the high efficiency of electric drive components, new energy-electric vehicles can save a lot on gasoline expenses.

The fuel economy of new energy-electric vehicles is calculated differently from conventional vehicles because they run entirely on electricity.

Kilowatt hours per 100 miles (kWh) and miles per gallon of gasoline-equivalent (MPGe) are typical measurements. Modern all-new energy electric vehicles can reach 130 MPGe or more and can travel 100 miles at 25 to 40 kWh, depending on how they operate.

Plug-in hybrids generally have lower fuel costs and better gas mileage than other similar conventional vehicles. 

The payload transported by the vehicle has a huge impact on the fuel efficiency of medium- and heavy-duty EVs and PHEVs, but under the right circumstances, EVs retain considerable fuel costs relative to conventional vehicles' Advantage peers.

It is currently difficult to accurately predict the potential of new energy-electric vehicles to create new jobs. There is reason to believe that the electrification of private transport will lead to the development of employment opportunities in various businesses.

To make more technologically advanced cars, the auto industry has to hire more people. Many of these jobs will be created in industries closely related to:

Modern battery technology,

Automobile production,

Research,

Development.

Companies that manufacture NEVs, NEV components, and NEV infrastructure have increased production, creating direct jobs.

Occupations associated with suppliers to these direct producers are called indirect jobs. Furthermore, increased spending in the larger economy is the result of increased direct and indirect occupational hiring.

These provide induced employment in industries such as clothing, food, and entertainment.

These compelling economics are powerful motivators for considering new energy-electric vehicles.

By offering tax breaks for NEV sales, lawmakers and regulators are sure to remove barriers to NEV adoption.

Other supporting programs, such as charger subsidies, building codes to prepare new development of new energy electric vehicles, faster permits for charger installations, and rules that enable utilities to contribute to the cost of creating charging infrastructure, also have helped to increase the sales of new energy electric vehicles.

The above briefly introduces the impact of new energy vehicles on the economy. If you want to buy new energy-electric vehicles, please contact us.

Yitongda is a professional Chinese used car export supplier. It has established a vehicle supply channel network with major OEMs, and established cooperation with Volkswagen, BAIC, Changan, Hongqi, Xiaopeng and other OEMs and large car dealers; and domestic resource car dealerships Establish cooperation with dealers, used car information trading platforms, and used car professional entity markets. It is a national second-hand car export pilot enterprise.