{"id":2871,"date":"2023-04-14T16:40:58","date_gmt":"2023-04-14T21:40:58","guid":{"rendered":"https:\/\/nakedpolitics.net\/?p=2871"},"modified":"2023-04-14T16:40:59","modified_gmt":"2023-04-14T21:40:59","slug":"peak-ev-electric-vehicles-will-fade-as-their-true-costs-become-clear","status":"publish","type":"post","link":"https:\/\/nakedpolitics.net\/?p=2871","title":{"rendered":"Peak EV: Electric Vehicles Will Fade as Their True Costs Become Clear"},"content":{"rendered":"\n

\u201cOn Wednesday, the Environmental Protection Agency plans to announce tough new tailpipe emission standards designed to effectively force the auto industry to phase out the sale of gas-powered cars,\u201d reports The Verge<\/em><\/a>, with the provocative headline \u201cThe End Is Nigh for Gas-Powered Cars.\u201d<\/p>\n\n\n\n

Environmental, social, and corporate governance (ESG) is the newest religion, and we all know who the practitioners are. Electric vehicle (EV) owners sing \u201cHallelujah\u201d when they pull out of their garages. The investor-class ESG evangelists believe the new belief is in its beginnings. Whatever the Biden EPA does, investor Harris Kupperman thinks it\u2019s likely just the Church of What\u2019s Happening Now.<\/p>\n\n\n\n

Kupperman, referred to as Kuppy by Real Vision<\/a>\u2019s Maggie Lake, told her, \u201cWell, I think we\u2019re nearing peak ESG, which is probably a good thing, honestly.\u201d He explained,<\/p>\n\n\n\n

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And it\u2019s like religions kind of come, they peak, they die out. No one practices Roman religions anymore. I can name three of the gods and I\u2019m a Roman history major.<\/p>\n\n\n\n

These things, they peak, they crest, and this little religion of ESG, it\u2019s been around for a while. It peaked. And now there\u2019ll be some die hard adherence, but I think the vast majority of investors want to make money. And it\u2019s great if they\u2019re doing something that has a social good, but most of them just want to save for their retirement.<\/p>\n<\/blockquote>\n\n\n\n

As to all those fancy Teslas silently cutting you off in traffic, their drivers teeming with superiority, thinking they are saving the planet, Kuppy sees them going the way of T. rex. \u201cNo. I think EV is going to be something you\u2019re going to go to a museum with my kids and be like, wow, that was an evolutionary dead end and we always [waste] trillions of dollars on this. No, I think that there\u2019s no future to EV.\u201d<\/p>\n\n\n\n

\u201cReally, why?\u201d an aghast Lake wondered.<\/p>\n\n\n\n

Next, Kuppy comes with the hard facts amateur environmentalists and government enforcers don\u2019t consider.<\/p>\n\n\n\n

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Because it [the EV] destroys energy. You have this concept called EROI, which is the return on energy you put in. An EV, you put more energy in than you get out. And so as a result, it\u2019s just like a thermodynamic rule\u2014it won\u2019t work unless you subsidize it.<\/p>\n\n\n\n

What\u2019s the reason for EVs? It\u2019s because it supposedly produces less carbon. But through the full life cycle of owning an EV, because so much carbon has to go into the stupid thing, it doesn\u2019t use less carbon. You\u2019re better off having a gas guzzler.<\/p>\n<\/blockquote>\n\n\n\n

Yikes. Maybe EV owners are not as heroic as they believe.<\/p>\n\n\n\n

Kupperman says that without government subsidies, consumers will stick to internal combustion engine (ICE) vehicles. In fact, even with subsidies, most people, like Kupperman, will buy ICE vehicles. But there will always be snobs.<\/p>\n\n\n\n

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[If] you kind of want to be a snob and say you\u2019ve got an EV, then be a snob. It\u2019s a nice thing to have if you want to show off that you have a thing. For me, I have a truck. Doesn\u2019t bother me at all and I\u2019m proud of my truck.<\/p>\n<\/blockquote>\n\n\n\n

However, \u201cif carbon is the thing you\u2019re caring about, you\u2019re caring about the total cost of using the car or the energy in versus energy out. Almost any component you look at, you\u2019re better off just having an internal combustion engine. And those engines have actually gotten very efficient over the last couple of years.\u201d<\/p>\n\n\n\n

Kupperman points out that as these EVs age, owners will see<\/p>\n\n\n\n

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what happens to battery degradation with lithium ion batteries, and the fact that the lithium ion battery is such a large component of the total cost of a car, and when you\u2019re at year five or six [and] have to replace 30% to 40% of your car\u2019s initial cost, people are going to realize the lifetime cost of owning an EV is astronomically high.<\/p>\n<\/blockquote>\n\n\n\n

Thus, in Kuppy\u2019s view adoption will decline and EV owners will have second thoughts and realize their EVs are terrible vehicles.<\/p>\n\n\n\n

As far as ESG goes, it is just a tax on humanity, according to Kupperman. \u201cAnd that\u2019s a real detriment to 6 billion people that want a better standard of living if they can\u2019t afford the things to pull them up out of poverty, effectively.\u201d<\/p>\n\n\n\n

Kupperman believes continued demand for energy is unstoppable and the government will only make matters worse.<\/p>\n\n\n\n

\n

They\u2019ll try all sorts of stupid things. Governments historically do really dumb things that make problems worse. That\u2019s the history of governments. I assume they\u2019ll try all sorts of things that\u2019ll fail. And all that it will do will be to destroy the supply response because of the government\u2019s interfering in your ability to do your business.<\/p>\n<\/blockquote>\n\n\n\n

When Lake asked about potential government interference, Kupperman replied,<\/p>\n\n\n\n

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Yeah, they\u2019re probably going to try excess profits taxes. They\u2019re probably going to try export bans, and price caps, and all sorts of other things. And the net result is that guys will take their dividends and go to the beach. They\u2019re not going to drill for oil. No, I think it\u2019s almost inevitable that the government will take a problem and turn it into a crisis.<\/p>\n<\/blockquote>\n\n\n\n

Yes, an energy crisis is on the way, courtesy of Uncle Sam.<\/p>\n\n\n\n

<\/p>\n\n\n\n

Original Article: https:\/\/mises.org\/wire\/peak-ev-electric-vehicles-will-fade-their-true-costs-become-clear<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

\u201cOn Wednesday, the Environmental Protection Agency plans to announce tough new tailpipe emission standards designed to effectively force the auto industry to phase out the sale of gas-powered cars,\u201d reports The Verge, with the provocative headline \u201cThe End Is Nigh for Gas-Powered Cars.\u201d Environmental, social, and corporate governance (ESG) is the newest religion, and we all know who the practitioners are. Electric vehicle (EV) owners sing \u201cHallelujah\u201d when they pull out of their garages. The investor-class ESG evangelists believe the new […]<\/p>\n","protected":false},"author":49,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[17],"tags":[],"class_list":["post-2871","post","type-post","status-publish","format-standard","hentry","category-opinion"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/posts\/2871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2871"}],"version-history":[{"count":1,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/posts\/2871\/revisions"}],"predecessor-version":[{"id":2872,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=\/wp\/v2\/posts\/2871\/revisions\/2872"}],"wp:attachment":[{"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nakedpolitics.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}