Weak Emission Standards and Australia's Low Takeup of Electric Vehicles

Abstract

Australia is unusual among developed countries both in lacking fleet-wide vehicle carbon dioxide emission standards and in having a very low takeup of all-electric vehicles. This paper outlines how fleet-wide vehicle carbon dioxide emission standards operate and identifies mechanisms by which their absence might lead to a low takeup of electric vehicles in countries such as Australia. Although hard to verify one of those mechanisms in Australia (higher prices charged for all-electric vehicles), it is easy to verify the unusually low number of models of all-electric models made available for sale. The paper also outlines Australia's slow 15-year journey towards standards, pointing to the possible role of political machinations and political caution in delaying their introduction. It identifies one group of employees with much to lose from a rapid uptake of electric vehicles—motor mechanics.