Barry Barton “Electric Vehicles, Conventional Vehicles and Climate Change Policy.” Energy Cultures Conference 2016

1. Barry Barton
Centre for Environmental,
Resources and Energy Law
(CEREL)
Electric Vehicles,
Conventional Vehicles,
and Climate Change
Policy

2. EV New Presentation

3. Research on transport law and policy within the
Energy Cultures programme:
• B Barton and P Schütte, Electric Vehicle Policy:
New Zealand in a Comparative Context (CEREL,
2015), available www.waikato.ac.nz/cerel
• VTS Purusram, “Cycling Safety in New Zealand:
An Analysis of Law and Policy” (LLM thesis,
University of Waikato, 2015).
• B Barton and P Schütte, “Electric Vehicles:
Promoting Improvements in Transport” [2016]
New Zealand Law Journal 31-35.
• B Barton, “What to Look for in Electric Vehicles
Policy” www.pureadvantage.org (2016).
• B Barton, “Electric Vehicles Policy Announcement:
Strengths and Weaknesses” [2016] New Zealand
Law Journal (forthcoming).

4. EV New Presentation
Ministry for the Environment,
New Zealand’s Climate Change
Target (2015).
Road transport
emissions are up
69% from 1990.

5. CO2 emissions from the
New Zealand vehicle fleet
From NZ Ministry of Transport
Annual Fleet Statistics 2014, p 11.

6. • Lower GHG emissions
• Less air pollution and
noise (in some
circumstances)
• Energy security and
efficiency
Advantages of
EVs from a policy
point of view:

7. • Price
• Limited number of
models
• Range limitations
• Charging facilities
• Uncertainty and
unfamiliarity
• Little recognition of
their benefits and
lower adverse effects
compared to ICVs.
Barriers to the
widespread uptake
of EVs:

8. Effect on GHG emissions if the target is reached:
• GHG reductions from transport would be about 151 kt,
~1.1% of projected national transport sector emissions.
• About 0.28% of NZ’s total national GHG emissions in 2013.
(Assuming that plug-in hybrid EVs actually run on electricity.)
Policy announcement of
the Minister of Energy &
Transport,
5 May 2016
NZ has about 3,300,000
light vehicles.
NZ adds about 250,000
new light vehicles a year.
• A target of doubling the number of EVs every
year to reach 64,000 by 2021, about 2% of
current light vehicle fleet.
This is a non-government estimate. No analysis was given to
explain the target or the measures that might support it.

9. Policyannouncementof5May2016 • Extending Road User Charge exemption
on light EVs until they make up 2% of
fleet (or until 2021).
• RUC for heavy EVs until they make up 2%.
• Bulk vehicle purchase programme.
• Coordinating to support growth of the
charging network.
• Information and promotion campaign.
• Contestable fund $6 m pa to support low
emission vehicle projects.
• Allow EVs into bus lanes and high-
occupancy lanes.
• Review tax depreciation rates, calculation
of FBT, and ACC rules.
• A subsidy.
• In 2014, NZ had 68 EV buses and 1 truck.
• Likely to be effective.
• Network important. It is being delivered
by private enterprise ahead of demand.
• Likely to be effective if it is carefully aimed
at what changes purchase behaviour.
• Objective uncertain. Good if not just EVs.
• A common incentive overseas, usually
with significant subsidies.
• Likely to be important, but work has not
started.

10. • Price does matter.
• Price support measures usually work, but they need to be
well designed.
• Measures that reduce the price immediately work better
than ones that affect the long-term total cost of ownership.
• Price support measures need to make a substantial
difference to the gap between ICV prices and EV prices.
• Long-term policy settings are needed in order to promote
investment certainty.
• The equity problem.
• The RUC exemption subsidy.
Price and subsidy:
what we know
from the research

11. • Fuel efficiency standards are long-established in
most countries.
• Australia and New Zealand are the main
exceptions.
• They are efficacious; they work well to change
the performance of a country’s vehicle fleet.
• They alter the composition of the whole vehicle
fleet.
• They support EVs.
Fuel efficiency
measures:
what we know from
the research

12. Fuel efficiency
measures
Source:
Miller and Façanha (2014).

13. • In the US, federal tax credits for the
purchase of EVs may have zero impact
because of the pressure that CAFE
standards put on vehicle suppliers.
• In the UK, GHG emissions legislation has
been ‘decisive’ and ‘a key driver’ in EV
uptake.
Fuel efficiency
measures
Sources:
US Congressional Budget Office
(2012); Element Energy (2013).

14. • National Energy Efficiency and
Conservation Strategy.
• The process for a new NEECS is under
way.
• The NZ Emissions Trading Scheme
affects vehicle use, not purchase, and
only very slightly.
Fuel efficiency
measures

15. Advantages of EVs
MBIE, Importer Margins, 2 July 2016.

16. One policy measure that would do these things
is the feebate system.
• Feebates have a good track record
internationally.
• Used in France and other countries.
• Suitable to the New Zealand.
• Complementary to the NZETS.
We need policy measures that will:
(i) address the EV price problem and
(ii) promote fuel efficiency through the whole
vehicle fleet.

17. From: German and Meszler, Best Practices for Feebate Program Design & Implementation, 2010

18. • Help development of charging facilities
• Purchase EVs for their own fleets.
• Require contractors to use high-
performance vehicles (eg as to emissions,
renewable transport energy).
• Push central government on climate
change, air quality, and fuel efficiency.
• Carry on with work managing transport
demand and modes
What can local
government do?

19. • Settlement patterns and urban
form.
• Public transport and active
transport.
• Biofuels, hydrogen, fuel efficiency,
electric vehicles.
Avoid-Shift-Improve
The different
components of
transport policy.
EV policy is
vehicle policy.

20. • Research provides insight to choose policy
measures.
• The international research shows that in NZ we
are only partly on the right track.
• We need more research on:
o Whether the RUC exemption is an effective
incentive.
o Whether the RUC exemption subsidy plus
bus lane privilege will be positive in their
effect on attitudes to EVs and EV measures.
o What are the key information and perception
needs for potential EV purchasers.
Conclusions

21. Co-funders:Our main funder: