Projected Effects of Federal Policies on the Demand for Electric Vehicles and the Supply of Charging Stations

July 5, 2023

Presentation

Presentation by David H. Austin, an analyst in CBO’s Microeconomic Studies Division, at the 2023 Conference of the Western Economic Association International.

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Summary

Two recent federal policies encourage the adoption of electric vehicles (EVs):

The Infrastructure Investment and Jobs Act of 2021 provides up to $7.5 billion in subsidies for new EV charging stations.
The 2022 reconciliation act provides tax credits of up to $7,500 per qualifying EV for qualifying buyers.

CBO’s projections show the likely effects of those policies on EV demand and EV charger supply.

Projected Effects of Federal Policies on the Demand for Electric Vehicles and the Supply of Charging Stations from Congressional Budget Office