The U.S. Government’s “Green” Car Boondoggle Is Failing


Monday December 12th, 2011   •   Posted by David Theroux at 3:54pm PDT   •   13 Comments

In “For Obama’s green-car revolution, fits and starts” in the Washington Post, Carol Leonig and Joe Stephens report that the highly-touted, taxpayer subsidized, “green” car bonanza is failing, as production lines and sales expectations have been dramatically scaled back in recent months. In reality, this federal program is nothing but a corporate-welfare system for Obama supporters.

The Obama administration has poured roughly $5 billion in taxpayer funds into the electric-car industry, offering incentives to manufacturers, their suppliers and even car buyers who might want to go green.

But analysts say the risk is rising that taxpayers in many cases will not see a return on their money soon, if ever. Instead, they warn that some federally subsidized companies could be forced to shut down in coming months.

For President Obama, who has made clean-technology investment a hallmark of his job creation efforts, troubles in the electric-car sector pose a potential new political problem after the collapse of solar-panel maker Solyndra, which recently defaulted on a half-billion-dollar federal loan after filing for bankruptcy. The administration has channeled an estimated $80 billion of the stimulus recovery effort into grants and loans to clean energy and energy efficiency programs, companies and research.

Obama predicted in 2008 that green cars would create thousands of new U.S. jobs as demand soared. But in recent months, production lines and sales expectations have been dramatically scaled back. . . .

Obama started his alternative-vehicle push in the 2008 campaign, and his administration soon after put money behind the plan. Like Solyndra, several of the firms receiving support had investors who were also important Obama campaign donors.

Click here for full article.

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13 Responses to “The U.S. Government’s “Green” Car Boondoggle Is Failing”

  1. Rob McMillin says:

    The principle reality for electric cars is framed by the underlying and unyielding nature of the problem of energy density. The best electric batteries have an energy density more than an order of magnitude worse than gasoline. And unlike with microchips, which are on an exponential growth path, improvements in battery storage are in the 1-3% per year range. Add to this the fact that costs for these batteries are ridiculously steep, almost anything looks better.

  2. [...] The U.S. Government’s “Green” Car Boondoggle Is Failing [...]

  3. Tony Tuten says:

    The “green” cars are attractive for MOST patriotic Americans who want to STICK it to Mid-East OIL Barons and want US energy independence. BUT the cost are prohibitive for the American wallet. We are too burdened with taxes, fuel and heating costs, and worries about our future economic situation to invest in a program sponsored by a here today gone tomorrow US Government commitment to her people or anybody else for that matter.

  4. Bob Robertson says:

    Rob, the only thing I’d change in your post is to remove the word “almost” from the last sentence.

    Removing govt requirements and regulations to allow for very light commuter cars to be built would be far more effective for reducing demand on resources of all kinds, material and fuel.

    I can imagine a very small one-rotor Wankel driving a smart-car sized vehicle, being exceptionally fuel efficient.

  5. T M Colon says:

    What is rarely considered about electric cars is the total energy used in the entire cycle from building, use, and disposal. An electric car takes much more energy to make and recycle. All told, electric cars are no greener than conventional cars.

    What’s amusing is plugging in a light bulb is a green crime, plugging in an entire car is a green virtue. Electric cars are mostly an emissions relocation program and little else.

  6. Mohunch says:

    The electric car has been the next great idea for the last 100 years.

    Probably will be again, off and on, for the next 100 years or more.

    Unless some revolutionary battery technology comes along, they will never be a replacement for cars using fossil fuels.

  7. Shane Cline says:

    Academics and politicians are making a mistake in thinking green cars are good. It is a jump in their logic. By their own belief system, atmospheric carbon is bad, and that is a supportable stance. They should support declaring carbon a pollutant and taxing carbon to offset the externality damages – then get rid of the corporate tax to achieve revenue neutrality so as to not confound environmental protection with revenue generation.

    High carbon-based energy costs will naturally lead to alternatives such as wind, solar, cellulosic ethanol, and electric cars, without the government picking winners and losers – something that governments have always failed at doing. It would be cheaper because there would be no subsidies. And it would be economically efficient since a carbon tax has smaller deadweight losses than other taxes that would be reduced. Too bad such an approach is politically infeasible. The right is afraid of change. The left wants government at the helm and will not support simple, targeted, effective policy recommendations.

  8. Shane, Thank you for your comment, but I would suggest that CO2 is not a pollutant but instead an essential component of the life system on earth, and there is no evidence that CO2 fluctuations drive climate change. The scientific evidence shows that despite increases in CO2, there has been no warming since at least 1998. The conclusion to draw is that other factors such as solar, cloud, and/or other factors must be present that not only overrule overall CO2 influences but make the trivial man-made influences of no importance whatsoever.

  9. Mark Hedtke says:

    I have had the luxury of experiencing, tracking and participating in the history of alternative power for the past 30+ years. I have heard it all by industry “so called” experts, energy purveyors (“stall guys”) and even government “yes men”. Many have attempted to publically slight any alternative energy advances, with the usual industry doubletalk, saying that the development of alternative fuel is still in the laboratory stages and just economically isn’t ready to compete in the marketplace, so industry can’t move forward until then. (a partial article on energy background seen here at: http://www.stormynites.net/moonnews.net/articles/aeh.html)

    Alternative energy hasn’t collectively thrown up their hands in the meantime, so at this point in time at the end of 2011 despite the stonewalling, entrepreneurs have persevered without them, often on their own dime. A great example is how the US big 3 automobile industry, in my opinion, in collusion with the oil industry have done everything that they can to milk every dollar from consumers at the pump, while recording record profits. Even one auto manufacturer who developed the EV1 back in the late 1970′s as a lease only vehicle, in my opinion, saw the handwriting on the wall at it’s success, so it recalled all of it’s vehicles and destroyed them by crushing them, even though many of it’s leasors wanted to purchase the vehicles outright because they were so enthusiastic about the all electric car. Today, they are producing a vehicle that in my opinion has been put out on the market to actually dissuade consumers from buying an all electric vehicle, by not even coming close to the significantly better mileage that their original EV1 got or as reliably. As I said those entrepreneurs are moving ahead without them, just look at the Tesla Coupe. That isn’t all of the story, by any means. We now see other countries moving ahead of us in alternative energy building on our own findings with even greater breakthroughs and advances. If anything, it is our own government who has failed the US Consumer, working together with the stonewalling commercial interests, keeping us as “energy prisoners”. Certainly, there will always be naysayers about anything, however mark my words 2012 will mark the real beginning of the alternative energy onslaught by foreign automakers and alternative energy companies. We already see the likes of France and Germany, doing the only smart thing, dumping Nuclear in favor of alternative energy, China outstripping us all in not just electric vehicles but residential and industrial alternative power generation as well.

  10. Mark, There is no question that subsidies and privileges now given to conventional energy sources should be abolished. However, the reality for most of those who support “green cars” and “green businesses” more broadly is that they see no problem with corporate welfare so long as it comes their way, causing even more market distortions and crony capitalism.

    Electric cars and other forms of transportation may or may not be best, but having the government involved only guarantees mismanagement, corruption, and waste, while those energy sources that are reliable and inexpensive get pushed aside. Moreover, “green cars” have to be powered by some energy source and neither solar nor wind nor biomass nor tides nor hydropower nor any other “alternative” source is sufficient nor cost-effective.

    In addition, there is no evidence that CO2 levels, man-made or otherwise, have any net influence on climate change. CO2 is not a pollutant and the entire drive to reduce CO2 emissions is based on environmental religion not science. Indeed, earth temperatures have been flat or slightly decreasing since at least 1998, meaning that while CO2 levels have dramatically increased, other factors such as solar, cloud formations, and/or other factors must be having ultimate influence.

  11. Marc says:

    Robertson’s one-rotor rotary engine idea is a good one. When used in an inexpensive lightweight car it might be just what Americans need. Mazda has been going in the opposite direction, however, with their more powerful and complex third generation engines.

    Until another Edison or Tesla appears to rethink batteries I’ll stick with internal combustion. On the other hand, electric motorcycles do make sense for short urban trips. If I lived in the city I would seriously consider getting one.

  12. [...] are a few good reasons to think about just how much more federal money ($5 billion and counting) should be poured into subsidizing electric [...]

  13. [...] are a few good reasons to think about just how much more federal money ($5 billion and counting) should be poured into subsidizing electric [...]

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