Department of Economics

What are the environmental impacts of the production of electric vehicles?

Research by Jocelyn Zellhoefer

As environmental consciousness grows, there is a corresponding surge in the popularity of electric vehicles. This, in turn, leads to an increased demand for lithium, which is a crucial component in the production of batteries used in these vehicles. Therefore, as the demand for electric vehicles increases, so does the demand for lithium. However, the mining of lithium is hurting the environment and causing resource depletion. The paper explores the environmental impact of electric vehicles, including the use of non-renewable resources to produce electricity for these cars. The study investigates the impact of the supply and demand of lithium on the market for electric vehicles, as well as the negative externalities associated with their production and use. Finally, the paper discusses the challenges of finding substitutes for lithium-ion batteries and highlights the limitations of using renewable energy sources to power electric vehicles. In addition, I am proposing doubling the car sales tax for electric vehicle purchases with the aim of reducing demand for these vehicles, and utilizing the additional revenue for environmental restoration initiatives.