Gasoline prices across the USA are more similar. California is high (say $1/gallon more than the cheapest state?) but that range is c 30% of average price?Our old reliable RAV4 is reaching the end of its life, it is primarily just a commuter car and gets a solid 33 mpg.
I figured an electric car might be a good replacement, but then did some back of the envelope math and I must be missing something?
With current PG&E rates up to .40 to .50/kwh:
Average of 30 kwh per 100 miles for an EV @ .45 cents ave = $13.50 for 100 miles
My old beat up RAV4 @ 33 mpg at $4.50/gallon = $13.63 for 100 miles
Am I missing something here? I think I'm better off just buying another couple year old RAV4?
Just feels counter intuitive with the push to electric.
Electricity prices vary widely. Yours are among the highest in the USA.* Hawaii is higher and some places in New England are nearly as bad.
In the UK we pay about 30 cents US/ kwhr for electricity (down a bit now - that's a Russian natural gas crisis price). But gasoline we pay over $6/ US gal. So the economics do work.
So the economic rationale varies by quite a bit depending upon that pair: electricity prices and gasoline prices.
The push to electric makes sense for environmental reasons (externalities in econ-speak). It also may make sense for drivers in many locales.
If you have solar PV array at home in California, I imagine it makes more sense.
* my understanding is the issue for PG&E is about the cost of upgrading infrastructure to reduce wildfire risk. Also the high cost of labour, etc - for doing anything in northern California (one of the richest regions on the planet). In addition the way that electricity rates are structured tends to put what are fixed costs onto a variable number (how much kwhr you burn).
EDIT
Creating a new vehicle is environmentally the worst thing, usually. If someone buys an EV but trades in their old ICE vehicle, then there are now 2 vehicles where once there was one. EVs are less environmental impact than ICEs in use, more in creation (probably) due to the various metals extracted and the energy cost of making the battery, but unless there is straight 1 for 1 substitution, it's not a net positive. (Other posters have nuanced arguments why my analysis is not correct).
Bottom line. Most ICEs, unless a real gas guzzler, it's better to drive them into the ground (or buy an already used one) than to buy a new EV.
Some of the really big gas guzzlers are probably worth just getting rid of (in favour of an EV). Ditto high mileage users. But again, if they don't go to the scrapheap, then buying a new car (of any type) to replace them is not a net gain.
Statistics: Posted by Valuethinker — Thu Feb 29, 2024 2:50 am — Replies 32 — Views 1924