If you think EVs are always greener, these county-level maps will take you by surprise.

The idea that gasoline cars might cause less environmental harm than electric vehicles seems impossibly backwards. But consider the following thought experiment before you dismiss it out of hand.

A view from the tailpipe gives EVs a clear edge: no emissions, no pollution, no problem. Shift the view to that of a smokestack, though, and we get a much different picture. The EV that caused no environmental damage on the road during the day still needs to be charged at night. This requires a great deal of electricity generated by a power plant somewhere, and if that power plant runs on coal, it’s not hard to imagine it spewing more emissions from a smokestack than a comparable gas car coughed up from a tailpipe.

So the truth of the matter hinges on perspective—and, it turns out, geography. That’s the sobering lesson from an incredibly sophisticated new working study by a group of economists. Using a fine-grained, county-level measure of U.S. vehicle emissions traced to tailpipes and electricity grids, the researchers mapped where gas cars and EVs cause more respective pollution. In some places electrics do so much relative harm that instead of being subsidized, as is currently the case, they should actually be taxed.

“What we find is that the benefits are substantially different depending on where you are in the country,” study co-author Stephen Holland of the University of North Carolina, Greensboro, tells CityLab. “The real big take-home message is: location, location, location.”

Environmental Benefits from Driving Electric Vehicles?

Stephen P. Holland, Erin T. Mansur, Nicholas Z. Muller, Andrew J. Yates

NBER Working Paper No. 21291

Issued in June 2015

NBER Program(s):   EEE 

Electric vehicles offer the promise of reduced environmental externalities relative to their gasoline counterparts. We combine a theoretical discrete-choice model of new vehicle purchases, an econometric analysis of the marginal emissions from electricity, and the AP2 air pollution model to estimate the environmental benefit of electric vehicles. First, we find considerable variation in the environmental benefit, implying a range of second-best electric vehicle purchase subsidies from $3025 in California to -$4773 in North Dakota, with a mean of -$742. Second, over ninety percent of local environmental externalities from driving an electric vehicle in one state are exported to others, implying that electric vehicles may be subsidized locally, even though they may lead to negative environmental benefits overall. Third, geographically differentiated subsidies can reduce deadweight loss, but only modestly. Fourth, the current federal purchase subsidy of $7500 has greater deadweight loss than a no-subsidy policy.