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Energy Policies

Viewpoint – Electric Vehicle Sales Quotas: A Tax in Disguise

The Quebec government has set itself the ambitious task of reducing greenhouse gas (GHG) emissions to 37.5% below their 1990 levels by 2030. In order to reach this target, important policy efforts have been devoted to the transportation sector, which accounts for 43% of total emissions. At the forefront of such efforts are electric vehicle subsidies. But starting with their 2018 models, carmakers will now also be faced with electric and hybrid vehicle sales quotas. This is a tax in all but name, which will disproportionately increase prices of conventional vehicles.

Are Electric Vehicle Subsidies Efficient?

Ontario and Quebec have set ambitious targets aimed at reducing greenhouse gases (GHGs), respectively 37% and 37.5% by 2030 compared to 1990 levels. The transportation sector is crucial for achieving these ambitious targets, since it represents over a third of the emissions of each province. These have therefore decided to implement, among other things, subsidies to electric vehicles. But is this injection of public funds the best use of our money?

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