Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Dry piping asks: Who wants an electric car now?

Dry piping asks: Who wants an electric car now?



If complacency could be bottled and burned, East Coast drivers would have no problem this week.

Things were being dumped by Teslas, Nissan Leafs, and every other electric vehicle, silently approaching past dry gas stations and frantic drivers filling all sorts of tanks with fast-running fuel. When the corpses turned to nylon bags, the justice of the pure, green observers no doubt reached the red line.

“It’s certainly a good time to be an electric car driver,” said Clemson University economist Matthew Lewis of his home in northwestern South Carolina. “There’s no gasoline around here at all.”

Gas stations are slowly filling their tanks this weekend, but will the failure of the colonial pipeline ̵

1; a computer hack that closed the country’s largest pipeline and cause panic, accumulating an acute shortage – trigger a surge in electric vehicle sales? The short answer, according to economists like Lewis: probably not. But a big “but” must be considered.

USA-CAR-ENERGY-ENVIRONMENT-RETAIL

Although some gas stations have dried up in the southeast, the average price per gallon in the United States remains far lower than it was from 2011 to 2014.

Photographer: Kena Betancourt / AFP / Getty Images

Historically, gasoline it’s not a very resilient product, which means that drivers aren’t very sensitive to price fluctuations – at least they’re not sensitive enough to change their driving habits or buy a greener vehicle. In fact, there is evidence that American drivers have become less sensitive to rising gas prices in recent years. A A 2006 study by economists at the University of California found a 10-fold decrease in gas elasticity between the late 1970s and early 2000s. The authors cite an increase in suburban development and commuting, combined with a decline in public transport; more efficient vehicles may also have played a role, economists say.

When oil prices fell in 2014, sales of hybrid cars also fell, suggesting a weak correlation, according to BloombergNEF. Acceptance speed of all-electric vehicles did not deviate, it remains stable, which suggests that the Tesla crowd is making purchasing decisions based on the environment and personal choice, not on monthly gas bills. This is not surprising given the average price of electric vehicles at the time; almost the entire product category falls into the luxury segment.

Inelastic

Sales of electric vehicles have grown sharply in recent years, despite weakening gas prices.

Source: Bloomberg Intelligence


For almost every product, the elasticity of demand depends largely on two things: duration and alternatives. For the former, demand does not decrease unless price increases are expected to continue. This seems to be the case this week: Even as gas stations dried up, prices rose by only 4.8% in the last two weeks. IN $ 3.04 per gallon, the average price in the United States remains far lower than it was from 2011 to 2014.

A bullish economy – especially in a difficult labor market – tends to hit every penny pressing the pump. In general, when we work, we drive. When we earn more, we buy bigger, less efficient vehicles and drive more.

Electric miles can also dry out. Frank Volak, an economist at Stanford, noted that widespread power outages today are much more common than pipeline outages. In fact, energy managers across the Western United States are warning summer of eclipses, as extreme heat emphasizes that utilities stop dirty plants and switch to wind and solar energy.




Source link