2 hours ago
https://ethz.ch/en/news-and-events/eth-n...ected.html
KEY POINTS: Electric vehicles could become economically competitive in many African countries before 2040. Off-grid solar solutions make charging possible even in places with no or unreliable electrical grids. Major challenges remain in terms of financing, with high interest rates slowing down adoption, despite drops in cost of technology.
EXCERPTS: The number of vehicles in Africa is expected to double between now and 2050 – faster than on any other continent. The question is not whether mobility will increase, but how. A new study [...] hows that electric vehicles, combined with solar-powered off-grid charging systems, could be economically competitive in many African countries well before 2040.
[...] A second study, which Bessie Noll is involved in and which was published in external page Nature Sustainability, reveals another dimension of the transition. This study examines the implications of the global transition to electric vehicles for public finances worldwide. Today, taxes on petrol and diesel generate around $900 billion per year worldwide. In many countries, this revenue finances road building and more broadly transport infrastructure. With the rise of electric vehicles, this revenue is at risk of disappearing.
Low-income countries are bearing the brunt. Here, fuel taxes account for more than nine percent of total government revenue on average, significantly higher than in wealthier countries. At the same time, these countries often have less institutional capacity to introduce new tax regimes quickly. “The transition to electric vehicles makes sense in terms of climate policy, but poses difficult budgetary questions for a lot of countries,” notes Noll. Early tax reforms and international support could help to avoid financing gaps.
Together, both studies show that e-mobility in Africa is technically and economically feasible, but it will take forward-thinking policies that take a holistic view of energy, transport and financial issues if it is to achieve its full potential... (MORE - missing details)
KEY POINTS: Electric vehicles could become economically competitive in many African countries before 2040. Off-grid solar solutions make charging possible even in places with no or unreliable electrical grids. Major challenges remain in terms of financing, with high interest rates slowing down adoption, despite drops in cost of technology.
EXCERPTS: The number of vehicles in Africa is expected to double between now and 2050 – faster than on any other continent. The question is not whether mobility will increase, but how. A new study [...] hows that electric vehicles, combined with solar-powered off-grid charging systems, could be economically competitive in many African countries well before 2040.
[...] A second study, which Bessie Noll is involved in and which was published in external page Nature Sustainability, reveals another dimension of the transition. This study examines the implications of the global transition to electric vehicles for public finances worldwide. Today, taxes on petrol and diesel generate around $900 billion per year worldwide. In many countries, this revenue finances road building and more broadly transport infrastructure. With the rise of electric vehicles, this revenue is at risk of disappearing.
Low-income countries are bearing the brunt. Here, fuel taxes account for more than nine percent of total government revenue on average, significantly higher than in wealthier countries. At the same time, these countries often have less institutional capacity to introduce new tax regimes quickly. “The transition to electric vehicles makes sense in terms of climate policy, but poses difficult budgetary questions for a lot of countries,” notes Noll. Early tax reforms and international support could help to avoid financing gaps.
Together, both studies show that e-mobility in Africa is technically and economically feasible, but it will take forward-thinking policies that take a holistic view of energy, transport and financial issues if it is to achieve its full potential... (MORE - missing details)