Electric Vehicles: Most debate has revolved around investment in electric vehicle, but
this market is risky for both private investors and public authorities. There is no clear path to
an alternative energy future, or on the timing and cost of the transition to an electric future
based on renewable energy. There is also competition between the existing technologies and
other energy carriers (hydrogen, pure electric, plug-in hybrid, biofuels), and each may be
supported by separate government interventions that to some extent exist in isolation.
Improvements in the fuel efficiency of traditional internal combustion vehicles have been
robust, accelerated by regulatory requirements and tax incentives, eroding the short to middleterm
business case for fossil fuel alternatives, particularly if the energy used still relies on nonrenewable
sources. Ironically, the main impact of the ‘electric revolution’ may be to stimulate
much greater efficiency in the conventional ICE power train, and in the development of fuel
efficient engine control systems.