Electric Vehicles Can Power Manufacturing

The other day I read an article on electric vehicles (EVs) concerning investments. (http://seekingalpha.com/article/130742-electric-car-initiatives-heat-up-implications-for-investors?source=yahoo). The thing that struck me most about the article was that it indirectly indicated that EVs are good for America and American manufacturing.

EVs are good for America on several counts; they are more energy efficient, they produce much less pollution, and they are good for domestic manufacturing. Better energy efficiency reduces the amount of energy we have to consume, which translates into less oil we have to import. The higher energy efficiency can potentially save the consumer money.

Even if you do not believe in global warming, switching to green technologies to produce energy is good for both the economy and the environment. Less pollution means less pollution related health issues and less pollution related corrosion of our infrastructure.

EVs also add to our manufacturing economy by having domestic production of the EVs. A further benefit is that the EV can be powered by electricity from wind, solar, natural gas, nuclear, coal, etc. That energy will need to be generated domestically. There might be less gasoline stations, but is that a bad thing?

We are already seeing investments in battery makers, both domestic and abroad, in a ramp up to EV, and increased hybrid, production. There are already projects, both public and private, to add to our domestic wind and solar energy production levels. Wind energy manufacturing companies are needed to provide wind turbines, turbine towers, control systems and much more. Solar power has similar needs.

When looking at the benefits of EVs, one needs to look at the overall impact on the economy and not just the EV in isolation. Only time will tell if an EV directly saves the owner money. Even if it does not, it helps domestic manufacturing, reduce indirect social costs, and help our overall economy. All of these things help everyone.