The Electric Vehicle Acceptance Tipping Point: $5-A-Gallon Gas
It would be a disaster economically, upsetting family budgets and making the transporting of goods potentially next to impossible. But according to a new survey by Deloitte, it could take something as extreme as $5-per-gallon of gas to persuade most U.S. citizens to abandon gas stations and SUVs and buy electric vehicles. Do we have to destroy this village in order to save it?
For most of the last month, the national average gas price in the U.S. has nudged upwards every single day—it’s now at around $3.83 per gallon. In six states, including New York, the average price is above $4, with Hawaii topping the list at $4.48 per gallon. And there are reports that a few stations have already hit the $5 mark. It’s all thanks to a gradual but continuous rise in the price of oil on global markets—up 48% since last Labor Day. This upward creep is driven by many things, including market fluctuations, decisions about production made by OPEC, and the rise of civil unrest in the Middle East (especially in Libya, which has ceased its oil exports during the civil war). And yet, despite these growing costs, and the fact we know for sure that every mile we drive in a car that eats gas or diesel, we’re actively contributing to global warming, many of us continue to drive cars.
What will it take to change the situation, pushing most Americans to ditch their SUV and buy an eco-friendly electric car? An arbitrary price limit, that’s what—the point at which gas hits $5 per gallon.
That’s what Deloitte found after interviewing 12,000 people worldwide, with more than 1,000 respondents in the U.S. The main conclusion of the survey is that the higher gas prices go, the more consumers favor the notion of electric vehicles. That seems like a no-brainer (even someone poor at math can imagine the increased cost of running a car as gas prices rise), but it’s still an important conclusion given that gas prices are definitely increasing and unlikely to drop any time soon.
Source: Fast Company