Electric Cars Hold Greater Promise for Reducing Emissions and Oil Imports

Strategic Insights -

A new research study published by the Baker Institute for Public Policy at Rice University has found that electric cars hold a greater promise for reducing emissions and lowering US oil imports than a national renewable portfolio standard. According to the study, mandating that 30% of all vehicles be electric by 2050 would reduce US oil use by 2.5 million barrels a day and cut emissions by 7%, compared to 4% reduction in emissions through national renewable portfolio standard.

Key Takeaways:

  • Mandating 30% of all vehicles be electric by 2050 would reduce US oil use by 2.5 million barrels a day, according to the study.
  • Electric vehicles could cut emissions by 7% in the US, compared to 4% reduction through national renewable portfolio standard.
  • Business-as-usual market-related trends might propel the US toward greater oil and natural gas self-sufficiency over the next 20 years.
  • Implementing carbon caps and pricing or a high carbon tax could lead to a significant increase in US reliance on oil imports between 2019 and 2025.
  • US reliance on imports of foreign liquefied natural gas (LNG) would increase by 2025 due to carbon pricing or high carbon tax.
  • Under a business-as-usual approach, the US won't have to import any LNG for decades.
  • The growth of natural gas will help the environment by lowering the demand for coal.

Statistics:

  • 2.5 million barrels a day: Reduction in US oil use by 2050 if 30% of all vehicles are electric.
  • 30%: Mandated electric vehicle penetration by 2050 for maximum emissions reduction.
  • 7%: Emissions reduction in the US through electric vehicle adoption.
  • 4%: Emissions reduction in the US through national renewable portfolio standard.
  • 20 years: Period over which US oil and natural gas self-sufficiency is expected to increase under business-as-usual market-related trends.
  • 2025: Year by which US reliance on imports of foreign liquefied natural gas (LNG) would increase due to carbon pricing or high carbon tax.

Sources:

  • Rice University's Baker Institute for Public Policy