Plug-in Electric Vehicles
Summary
The U.S. plug-in electric vehicle (PEV) market is characterized by rapid growth, with sales increasing 85 percent between 2012 and 2013. The market is dominated by four models: the Nissan LEAF, Chevrolet Volt, Toyota Prius Plug-in, and Tesla Model S. While PEVs produce no tailpipe emissions and generally lower greenhouse gas emissions than gasoline vehicles, challenges remain regarding charging infrastructure and the high cost of battery packs. Federal and state incentives, including tax credits up to $7,500, are used to improve commercial viability.
Key insights
- The U.S. plug-in electric vehicle market is growing rapidly, with sales increasing 85 percent from 2012 to 2013. By May 2014, sales were 31 percent higher than during the same period in 2013, although PEVs still represent less than one percent of all new vehicle sales.
- Four specific models—the Nissan LEAF, Chevrolet Volt, Toyota Prius Plug-in, and Tesla Model S—account for 81 percent of all plug-in vehicle sales in the U.S.
- Despite the fact that electricity generation can produce pollution, a 2012 study indicated that PEVs using the most carbon-intensive coal-powered grids in the U.S. still emit fewer greenhouse gases than the average gasoline-powered car.
- U.S. public charging infrastructure is limited, with only 8,000 public stations compared to 150,000 gasoline stations. While home charging is common, the adoption of rapid 220 and 400 volt chargers may require smart grid technology to prevent electric grid overloads and blackouts.
- Battery costs are a primary expense for PEVs, but prices are falling. Large-format battery packs cost approximately $500 per kWh in late 2013, down from 2009 prices, with projections suggesting costs could drop to $160 per kWh by 2025.
- Federal tax credits under the 2009 American Clean Energy and Security Act provide up to $7,500 for qualified PEVs, consisting of a $2,500 base credit plus $417 per kWh of battery capacity over four kWh. These credits are phased out after an automaker produces 200,000 eligible vehicles.
- Various U.S. states provide additional incentives: California offers rebates up to $2,500 and HOV lane access; Washington provides sales and motor vehicle tax exemptions; Colorado offers tax credits up to $6,000 and charger installation rebates; and Georgia provides an income tax credit of up to $5,000.
Cite the original document
- APA
- Andrade, I., & Querejazu, D. (2014). Plug-in Electric Vehicles. Environmental and Energy Study Institute. https://www.eesi.org/papers/view/plug-in-electric-vehicles-2014
- Chicago
- Andrade, Ivana, and Daniel Querejazu. Plug-in Electric Vehicles. Environmental and Energy Study Institute, 2014. https://www.eesi.org/papers/view/plug-in-electric-vehicles-2014.
- Wikipedia
- {{cite report |last1=Andrade |first1=Ivana |last2=Querejazu |first2=Daniel |title=Plug-in Electric Vehicles |publisher=Environmental and Energy Study Institute |date=9 June 2014 |url=https://www.eesi.org/papers/view/plug-in-electric-vehicles-2014 |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{andrade2014plugin, author = {Andrade, Ivana and Querejazu, Daniel}, title = {{Plug-in Electric Vehicles}}, institution = {Environmental and Energy Study Institute}, year = {2014}, month = jun, url = {https://www.eesi.org/papers/view/plug-in-electric-vehicles-2014}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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