Electric Cars – Can China Save the World?

We investigate whether China can save the world by using and producing electric cars

For more than a decade, the debate has raged about whether or not adopting electric vehicles for personal transportation will reduce fossil fuel consumption and affect a massive reduction in air pollution around the world. Some say that electric cars could even slow down global warming enough to make it manageable – basically saving humanity in the process. And there’s plenty of research to back up these claims, including a report by the Energy Collective that explains how we might use modern coal and natural gas technology to generate electricity, put that electricity toward powering cards and reduce overall pollution.

The Catch

Electric cars are slow, inconvenient, underpowered and (usually), ugly which has made people extremely hesitant to make the switch. And so more and more conventional cars hit the road every year, and many scientists fear that we are rapidly approaching the point-of-no-return with regard to green-house gases, primarily as a result of car exhaust.

What Does China Have To Do With All Of This?

As China continues to buy new cars in unparalleled numbers, there exists a unique opportunity to ensure that a huge number of these are emissions-free vehicles. This would be a huge win for two reasons: 1) because it could bring about a sharp reduction in the amount of smog that fills the air of nearly every large city in China, and 2) because it would provide credibility to the repeated claims by the central government that China is committed to improve air quality and reduce pollution. Not to mention it would make China a world leader in an important technology and consumer sector.

To spur the movement along China has reinstated big tax breaks and rebates to serve as initiative for new or next car buyers; as much as RMB50,000 (around US$8,200) on some models. The reasoning is that the environmentally-conscious Chinese consumer will buy electric if the cost is comparable to buying a similar gasoline-powered car. Sound logic really.

Giving consumers tax breaks on electric cars may prove a progressive and effective tactic, and may be more palatable to commuters than China’s previous attempts to regulate vehicle use and decrease pollution. Several years ago, the nation instituted an outright ban on motorcycles and scooters. Many people disregarded this heavy-handed legislation and continued to ride their motorcycles, facing fines and the impounding of their vehicles. However, despite complaints about the motorcycle ban, it worked: sales of electric bicycles and scooters in China increased, and street level air quality improved.

If Chinese consumers were willing to give up gas-powered motorcycles in favor of electric bicycle, it seems likely that the offer of big tax breaks will be enough to convince car owners to buy electric; especially seeing as 80 percent of new car sales are made to first-time buyers. New car owners without set brand preferences or driving habits may enjoy a tax break over the perks of a traditional, gas-powered car.

Providing More Options

Of course, many long time Chinese car owners may be resistant to any government legislation on electric powered vehicles; fearing that, like motorcycles, conventional cars could soon be fined or ordered off the road altogether. Chinese consumers have grown accustomed to their freedom of choice, and car companies have done everything in their power to provide as many options as possible to pick from, nearly all gasoline or diesel-powered. A car is often a symbol of wealth and success, and buyers who can afford it may prefer to continue buying luxury foreign brands, most of which are not electric. Other consumers may also be wary of purchasing Chinese-made cars in general; even if they are electric and good for the environment. This commentary is a good summary of recent bad press regarding safety, accountability and electric vehicle manufacturers in China.

Still, with tax breaks and better industry regulation, electric cars could be big business for China. As the world’s top manufacturer of batteries, China could easily create a national system of electric vehicle charging stations, while also developing innovative battery design improvements. Because domestic car sales are dropping dramatically, bringing electric vehicles and charging stations into their business models could help car manufacturers grow.

Seeing Opportunities

Major foreign automakers have already seen and jumped on the opportunity to bring electric cars to China. In Shanghai, General Motors has established their Advanced Research Division that is responsible for battery development and manufacturing. But this is a private foreign effort and, as with most things in China, until the government gets on board local automakers are not going to stray too far from the status quo.

Perhaps the new Tesla sedans will get the ball rolling amongst well-heeled buyers in China, and then the copycat designers will have a noble product to rip-off. Maybe, eventually, the clouds of smog that blankets most of China’s cities will make someone in power take noticeable action to reduce vehicular emissions.

So, can China save the world from air-pollution? No; not by itself. But with the right effort China can make a big impact on its own pollution problems and those of the planet as a whole. And potentially be a major driving force for the much needed global energy revolution. Now we just need to get the right people and money behind the even better solution: hydrogen.

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