-In this video, we will go over the range of public policies
in support of electric vehicles.
You will see that they are crucial
to the success of electric vehicles in Europe.
Like many innovations, electric vehicles need state support
in order to find their economic model.
This is the case during their launch phase
because production costs are still high
and impede their competitiveness compared to thermal vehicles.
Today these are built by the millions in well-amortized factories,
and to sum up, electric vehicles are more expensive
because they are produced in smaller quantities.
Therefore, it is the role of the state to address this structural weakness
through active supporting policies.
Once the market has matured, support is no longer needed
and electric vehicles will stand on their own two feet.
Note that in Europe, the impetus comes as much from the European Union
as from member states.
This is what we will see in the first part.
We will then see two particularly emblematic cases,
France and Norway.
Let us start from the beginning: in the end, what is the situation
regarding public support for electric vehicles?
On this point, we must first mention the decisive action
of the European Union on the products offered by vehicle manufacturers.
It is thanks to an ingenious system devised in the early 2000s
that manufacturers such as Renault or Volkswagen
are aware that they must bring the average CO2 emissions
of their sales below 95 grams of CO2 by 2021,
or else pay a hefty fine.
This visibility has allowed them to adapt their production system.
Be aware that 95 grams while SUVs are in fashion
is not easy to achieve, and therefore their solution
was to develop electric vehicles, as these emit 0 grams,
which helps to lower the CO2 average.
We see that this European regulation on CO2
led to the massive investment by manufacturers in electric vehicles.
In addition, the EU funds the deployment of charging corridors
between member countries, as part of the TEN-T program.
Industrial research programs are also funded
in order to help manufacturers meet these objectives.
However, offer does not necessarily mean demand,
and this is where states come in, as in the European Union,
many have understood this.
Today, no less than 24 countries have implemented public policies
to support demand for electric vehicles.
These policies involve different mechanisms:
subsidies for the purchase of cars and small commercial vehicles,
subsidies for any other type of vehicle,
favorable taxation for individuals,
investment in networks of charging stations
accessible to the public, aids for the purchase of private stations,
favorable taxation for businesses, or use benefits.
Each of the 24 countries that you see in the table
engages in at least one of these points.
But note that in all this, France is the first European market.
I will explain in more detail the mechanisms of this success.
Firstly, for vehicles, a comprehensive range of measures
exists today, that I will describe in more detail.
The first and main one is of course the environmental bonus.
Since 2007, it is possible to benefit from a bonus
on the purchase of an electric vehicle.
This scheme is financed by a malus
applied to the most polluting vehicles.
Basically it is a polluter pays principle.
The scheme has somewhat evolved since its launch in 2007.
Indeed, the bonus went from 7 000 euros originally
to 6300 euros at the end of last year,
and 6 000 euros since 2017.
There are of course criteria to be met: one must be an individual
or a professional based or living in France,
the vehicle must be new, it must be kept at least 6 months
and have traveled 6 000 km before being sold,
if it is rented, it must be for at least two years,
and the bonus must not exceed 27% of the purchase price.
Note that plug-in hybrid vehicles are also eligible,
under the same conditions, but for a bonus of 1 000 euros.
In 2015, this bonus was complemented with a so-called conversion premium,
which allows anyone who scraps a pre-2006 light vehicle
to benefit from an additional 4 000 euros
for the purchase of an electric vehicle
and 2 500 euros for the purchase of a plug-in hybrid,
all with exactly the same criteria.
Since 2017, there is also a new bonus, for category L vehicles,
motorcycles, scooters, tricycles, and quadricycles.
They are entitled to a premium of 250 euros
per kWh of on-board battery, capped at 1 000 euros.
Here too there are criteria to be met, one must be an individual
or a professional based in France, own the vehicle for at least one year,
and have over 3 kW of engine power.
Finally, electric-assisted bicycles
also have their premium since February 2017, of 200 euros.
The criteria are a capping at 20% of the purchase price of the vehicle,
no cumulation with local subsidies, and there are a lot of them,
and the bicycle must be owned at least one year.
Are excluded from the scheme bicycles using lead batteries,
vehicles with an average power greater than 3 kW,
and individuals having already benefited from the subsidy.
All what I just described is financed by the malus on polluting vehicles.
But state support does not stop at this envelope,
it also extends to business taxation.
Actually, public authorities realized that it was costly for businesses
to have an electric vehicle rather than a thermal vehicle.
And it is unfortunate, as businesses make up a large part
of new vehicle buyers.
Therefore, a range of tax advantages has been implemented to help them.
Firstly, electric vehicles are exempt from corporate vehicle taxes,
and businesses may have up to 30 000 euros
of depreciation of the cost of a vehicle
deducted from their corporate taxes, compared to only 18 300 euros
for thermal vehicles.
Note again that the cap is 20 300 euros for plug-in hybrids.
One last benefit has been implemented on the vehicle itself,
the air quality certificates.
These vignettes, created by the Ministry of Environment
make it possible to identify the level of pollution of the vehicle
and the idea is to use this system to block access to city centers
for the most polluting vehicles.
Today, mayors have the power to create restricted traffic areas,
as there are today in Paris and Grenoble,
and they will use it through these vignettes.
As for recharging, the state also realized that action was needed,
and implemented several solutions to facilitate the transition
to electric vehicles.
Émeric FORTINHead of the Master in Transport and Sustainable Development
Virginie BOUTUEILResearcher
