Subsidizing electric cars is inefficient and costly, report says
OTTAWA — Provincial subsidies to encourage the use of electric vehicles are the most expensive, least effective way to help cut greenhouse gas emissions, the Montreal Economic Institute says in a new report.
The organization studied the subsidies offered by the governments of Quebec and Ontario and says together they could cost those provinces more than $17 billion by 2030, while cutting emissions in those provinces less than four per cent a year.
Ontario offers rebates of up to $14,000 and Quebec up to $8,000, on the purchase of electric vehicles.
Germain Belzile, senior associate researcher at the institute and the report’s lead author, says over a decade, a zero-emission vehicle will produce about 30 tonnes less in emissions than a gasoline-powered vehicle.