Canada's PBO finds EVs more cost-effective long-term than gas models, but for 2030 targets, savings need to increase by 31%.

Canada's Parliamentary Budget Office (PBO) finds that electric vehicles (EVs) are already more cost-effective in the long term than gas-powered models. However, for Canada to meet its EV sales targets, savings must increase substantially, with the eight-year cost of an EV model in 2022 noted to be 88% of the eight-year cost of a similar gas-powered model for passenger cars, and 92% for SUVs and trucks. The operating and maintenance costs for EVs are up to 2.5 times less per year, but higher upfront costs remain a barrier for many families. The PBO states that for the 2030 targets to be met, the savings would need to grow by 31%, meaning that if the cost of an electric car or truck is currently 95% of buying and maintaining a gas model, it would need to fall to about 65%.

August 29, 2024
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