Introduction of Electric Vehicles to Ireland

Abstract

The objective of this study was to undertake a social cost–benefit analysis of the proposed deployment of 230,000 electric vehicles in Ireland by 2020. The study analyzed the socioeconomic costs and benefits of this policy by comparing the environmental benefits, expressed in monetary values, with the associated reduction in tax revenues and the cost of the government's electric vehicle grant scheme. The study found that the 10% penetration of annual sales by electric vehicles by 2020 would result in a monetary loss of approximately €324 million (US$ 457 million) for the government (0.5% to 1% of total tax revenue expressed at 2009 levels). The primary reason for this shortfall would be a loss in all sources of tax revenue as a result of the electric vehicle penetration rates required to achieve an appreciable reduction in greenhouse gas emissions.