London School of Economics’ Viet Nguyen-Tien and University of Birmingham’s Gavin Harper and Robert Elliott examine whether EVs have passed a tipping point for adoption.
A version of this article was originally published by The Conversation (CC BY-ND 4.0)
When the Strait of Hormuz first closed in March and oil hit $120 a barrel, a very old question came back: is this finally the moment electric vehicles (EV) take off for good – or just another false start?
EVs have been here before. They surged after the 1973 oil embargo, collapsed when oil fell, and surged again. Each wave died when the external pressure eased.
We think this time is different. In a new discussion paper, we argue that the economic case for electric vehicles is now improving on its own terms. This is because of what has happened to batteries, not because of the oil price. The same evidence, though, shows the transition creates new problems as serious as the ones it solves.
