6.4 The technology improvement speed
A high technology improvement speed depreciates
the current all-electric cars faster, worsening the
business case for all-electric cars. Some
governments and municipalities gives various
forms of incentives to all-electric car buyers like
free parking, permission to drive in bus lanes,
exception from congestion charges etc. These
incentives can’t last forever and will have to go
when all-electric cars become a more frequent
occurrence on the streets. One way to mitigate the
depreciation of older all-electric cars can be to give
incentives that follow the car until its end-of-life.
An older-technology all-electric car can then keep
an incentive that does not apply to a newer allelectric
car, hence a more reasonable depreciation
over time is supported