Is Environmentalism Passé? Part 2

Why do people buy EVs?

My assumption going into this research was that people buy electric cars in large part because they want to soften the environmental impact of driving a personal vehicle. That, after all, was much of my motivation. In the first post in this series I looked at recent EV advertising and it became clear to me that those marketing electric cars don’t think we’re terribly interested in the environment.

But of course marketing professionals don’t know everything. Their job isn’t actually to know what we want, but to figure out how to get us to buy what they are selling. And sometimes the little thing that pushes us over the edge and convinces us to pull out our checkbook isn’t a carefully thought through plan. So I thought I’d seek out some additional sources to determine whether American consumers are drawn to electric cars out of environmental concern.

I first looked at a few surveys. For instance, in March 2023, the American Automobile Association (AAA) conducted a survey to determine whether and why people might want to purchase an electric car. Of those who were interested in buying an EV, the number one reason they gave (76% of respondents) was saving money on fuel. Only 60% cited “concern for the environment” as a reason why they might want an electric car.

In 2022, The New York State Energy Research Development Authority (NYSERDA) conducted their own survey and came up with five top reasons why drivers are choosing EVs. Number one was the same that AAA found: 33% of respondents were excited to save money fueling their car. The NYSERDA estimates that the average New York State EV owner could save just over $600 a year compared to a comparable gasoline car.

"Cheap Gas!" by fireboat895 is licensed under CC BY 2.0.

The number two reason respondents (31% of them) were leaning towards EVs was because they hoped to lower the overall cost of their car over its lifetime. They figured that tax credits coupled with cheap fuel would make an electric car their cheapest option. [This is perhaps more true for New Yorkers than others in the US because they live in a state that offers an extra tax rebate (of up to $2000) above and beyond any federal rebates.*]

At this point in the report I was getting antsy. Surely when we get to the number three reason why New Yorkers are interested in EVs we’ll have something about the environment right?

Nope.

Number three is “lower maintenance costs.” I’ve written a bit about this before – fewer moving parts and explosions under the hood mean that as long as an EV’s battery is in good shape, its maintenance costs should be pretty low. The NYSERDA estimates it should be about half that of a gasoline powered car.

Finally, the last two factors on the list finally have roots in environmental concerns. Number 4 is “avoid using gasoline” (27%) and number 5 is “no tailpipe emissions or exhaust fumes” (23%). But it remains startling that those issues only seemed to be a concern for about 25% of people looking to buy an EV.

I have to admit that in the end these surveys leave me a bit wanting. They have convinced me that the environment isn’t as important a motivator as I would have thought. But I find it curious that they focus a lot on small financial details as powerful motivators when buying an EV. I do think that is definitely part of the calculus, but I suspect that there might be some bias in what people tell surveyors. When it comes to buying cars, a lot of us aren’t as rational as we perhaps think we are. I’ve studied automobiles for a long time and I’ve found plenty of people who have a passion for cars that is bigger than their concerns about saving a few bucks on maintenance.

Being a little frustrated with surveys I turned back to my old research friend – Reddit. It didn’t take long for me to find a post that offered an answer to the exact question I’ve been exploring…

Vjarizpe lives in Texas and drives a Rivian R1S – an enormous 7,000 pound fully electric SUV that can run 0-60 in around 3 seconds. When he was mocked by those in oil country for driving an EV he responded:

Look, the 'clean energy' aspect is like 7 on the list of why I got this. I got it cause it can survive the Rubicon Trail and smoke a Lamborghini Urus and mid-level Ferrari while my kids wave to the driver in their car seat in the third row... and all for under $100K. 

Can we all admit that, for many of us, the reason for purchasing an electric car has changed? It's no longer purchased exclusively by people who care about green energy or environmental issues. We can now purchase a vehicle that moves our kids comfortably and has the performance of an elite sports car, and way more storage... and I charge it for less than what I filled up my first car for in the 90's. All in all, we buy them cause they're just awesome cars. Period. 

I have to admit our friend Vjarizpe, makes a compelling case. We do buy cars for a wide variety of reasons. And yes, environmental sustainability may be an important one. But it is only one amongst many when we make what may be the second largest purchase we’ll make after our house. EVs can do things that gasoline powered cars can’t… and some of those things have nothing to do with being “environmentally friendly.”

This all leads me to a bit of a confession. It is indeed true that the primary reason we bought an EV was to step in the right direction when it comes to the environment. But I have to admit that the specific car we chose wasn’t the most environmentally friendly option out there.

We chose the model we wanted and were then deciding between two different trim levels. Curiously, the cheaper one got 56 more miles of range per charge than the slightly more expensive version. But it had a plasticky interior with uncomfortable seats. We ultimately went with the pricier car that is 15% less efficient. The allure of feeling wrapped in comfort and luxury was too much to pass up. I didn’t exactly splurge for an SUV that can smoke Ferraris while driving a high school basketball team through back desert roads. But I did sacrifice my commitment to the environment a bit when I bought my car.

So maybe the automobile marketers are right. Sure we care about the environment, but there are other needs we’re looking to satisfy when we buy EVs as well.

Of course these little decisions add up. In my next post I plan to explore what we as a society are sacrificing as we ask EVs to do more than just “be good for the environment.”

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Is Environmentalism Passé? Part 1

Is Environmentalism Passé? Part 3

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* In a post last summer I looked at how different groups promote their values through incentives. New York’s EV tax rebate has an interesting structure. The amount you get back depends on what the range of the car is. If the car you buy can only go 100 miles on a charge, you get $1000 in rebates. If your car can go over 200 miles on a charge, you may be eligible for a $2000 rebate. There is a catch though… they apparently aren’t interested in giving big tax rebates to people who can afford more than a cheap car. If your car has an MSRP over $42,000 (regardless of what you pay for it), you only get a $500 rebate. New York State appears to be trying to help out those who aren’t ultra wealthy buy an EV with a pretty usable range.