Why Aren’t We All Driving EVs Yet?!

 

Figure 1: by Author

Ever notice how Tesla’s are all over the news, but not on the road? Most cars around you still run on gas. So, if EVs are the future, why aren't they everywhere yet?

Despite this push for cleaner transportation and the fight against climate change, gas stations are still as busy as ever. Sure, EVs offer real benefits, but it’s not just about the environmental aspects.

The transition has begun, no doubt. But why is it taking so long?

The Upside of EVs: Positive Externalities

In the automotive industry, EVs offer a cleaner, more sustainable alternative to traditional gas-powered cars. They don't just benefit individual drivers, but they also create positive effects for society, which is defined as positive externalities.

One major win? Cleaner air. Unlike internal combustion engine (ICE) vehicles—like regular cars which use diesel oil or gasoline—BEVs produce zero emissions like CO or nitrogen oxides. This reduction in pollution doesn’t only provide better air quality for us, also, it reduces the effects of global warming.

And when we think about air pollution, what comes to mind? Health problems, exactly. According to the NHS, low air quality is the biggest environmental risk to public health in the UK. It's linked to shorter life expectancy, and rising medical costs by being the main reason for some of the serious chronic diseases. (Public Health England, 2018) By popularizing EVs, we can prevent these health issues caused by pollution.

You can´t talk about the benefits of EVs without mentioning renewable energy. According to research made by Stanford (Kuo, 2019), we will run out of fossil fuels –completely- before the end of the 21st century. That means we can no longer rely on them.  Switching to EVs helps drive investment in renewables and supports the shift toward a cleaner, more reliable energy future.

Figure 2 (Public Health England, 2018)

Barriers to EV adoption: Behavioral biases and Asymmetric Information

Well, you’re probably wondering why more of us haven’t made the switch to EVs yet. Unfortunately, there’s no straightforward answer. The truth is psychological biases can cloud consumer judgement. One is that people love instant rewards. It's called hyperbolic discounting, where we place more importance on the present than the near future.

 

Even though EVs save money in the long run, the hefty upfront price is a dealbreaker for most. Add in the stress about where and how long the charge will last, suddenly the switch doesn’t feel so simple (Arnold, 2024). It's a classic case of present bias: short-term concerns feel more urgent than future savings.

 

To make things harder, many people just don't want to leave their comfort zone. Your current car? That's your reference point, familiar, reliable, and part of your routine. Switching to an EV feels like giving that up, and suddenly the change feels like a loss, even if it pays off later (Kim et al., 2020). Economics call this loss aversion; we feel the pain of losing something more than the joy of gaining something new. So even when the future looks better with an EV, that short-term discomfort holds people back.

 

Sometimes, it’s not just mindset, it’s the lack of clear information. With EVs, there’s often a gap between what sellers know and what buyers understand.  Economists call this asymmetric information. Many people are skeptical because they don't have all the facts, like where to charge, how long it takes, or how far the car can go (Kim et al., 2020).

 

To address these barriers, governments are intervening by implementing measures to make EVs cheaper for consumers. Additionally, EV companies are reassuring buyers, highlighting the quality and features that aren't immediately obvious. Economists call this market signalling.

 

When it comes to signalling, Tesla leads the charge (pun intended). Known for its innovation, sleek design, and focus on sustainability, Tesla uses media buzz and its Supercharger network to send a clear message: “We’ve got you covered.” And it's working, a Canadian survey found that 50% of people familiar with the brand said it increased their interest in EVs (Miller, 2019).

 

At this point, you’re probably thinking: If all these issues are being addressed, what’s the problem?

 

The Hidden Costs: Negative Externalities

It's easy to picture a cleaner, greener future with EVs, and in many ways, they deliver. But there's a side that doesn't show up in shiny ads or sustainability reports.

 

Let's start with batteries. EVs rely on materials like lithium, cobalt and nickel, minerals that often come from developing countries, which usually means low wages, poor working conditions, and even child labour. On top of that, mining causes significant environmental damage. So, while EVs create positive externalities, they also generate hidden costs: negative externalities, not reflected in the car’s price but still paid by others.

 

And when those batteries reach the end of their life? Most aren't recycled properly and end up in landfills, creating long-term ecological harm.

 

Weight is another issue. EVs are much heavier than petrol cars, which leads to faster road wear and tire deterioration. And those worn tires? They shed microplastics into the air and water, polluting our health and the oceans (Kole et al., 2017).

 

Building a clean future is not just buying EVs. We need the infrastructure to support them, more charging stations, stronger power grids, and major investment. While this sounds great on paper, in practice, it puts pressure on public budgets and land use.

 

And here's a twist you might not expect: EVs could increase emissions. Since they're cheaper to run, people may drive more (Yang et al., 2017). This is known as the rebound effect or Jevons Paradox. So instead of reducing emissions, we are cancelling out the gains with increased traffic, energy demand, and if the grid is powered by fossil fuels, even more pollution.

 

Figure 3: Lifecycle Analysis of UK Road Vehicles  (Nikolas Hill,  2021)

 

EVs are an important step towards climate change, but they aren't perfect, as costs, which is important to address and not just promote the hype… But will EV’s ever take over?

 References:

Arnold, C. (2024). Power Shift: New Study Shows Over Half of Consumers Worry About EV Range. [online] StoryStream. Available at: https://storystream.ai/resources/blog/power-shift-ev-motivators-concerns/ [Accessed 3 Apr. 2025].

Haghani, M., Ghaderi, H. and Hensher, D. (2024). Hidden effects and externalities of electric vehicles. Energy Policy, 194, pp.114335–114335. doi:https://doi.org/10.1016/j.enpol.2024.114335.

Kim, J., Seung, H., Lee, J. and Ahn, J. (2020). Asymmetric preference and loss aversion for electric vehicles: The reference-dependent choice model capturing different preference directions. Energy Economics, 86, p.104666. doi:https://doi.org/10.1016/j.eneco.2020.104666.

Miller, I. (2019). Has Tesla influenced consumer perceptions of electric vehicles? Insights from a survey of Canadian car buyers Project Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Resource Management in the School of Resource and Environmental Management Faculty of Environment. [online] Available at: https://sustainabletransport.ca/wp-content/uploads/2019/08/ingermiller-699.pdf [Accessed 3 Apr. 2025].

Public Health England (2018). Health matters: Air Pollution. [online] GOV.UK. Available at: https://www.gov.uk/government/publications/health-matters-air-pollution/health-matters-air-pollution.

R B, L. (2023). The Environmental Impact of Battery Production for Electrical Vehicles. [online] Earth.org. Available at: https://earth.org/environmental-impact-of-battery-production/. ‌

Reference listKuo, G. (2019). When fossil fuels run out, What then? [online] The Millennium Alliance for Humanity and the Biosphere. Available at: https://mahb.stanford.edu/library-item/fossil-fuels-run/.