6.1 The price gap
Even if an all-electric car can drop considerably
in price, that will only happen if production
volumes of all-electric cars go up. Meanwhile,
the fierce price competition in the automotive
industry continues to keep ICE car prices down.
One way for governments to help reduce the
price gap between all-electric cars and ICE cars
without spending tax money can be to implement
a bonus-malus (i.e. fee-bate) system based on
CO2 tailpipe emissions on new car sales. Such a
system can be designed to be self-financed and
by that also be an easily understood, foreseeable
and long-stay measure.