Labour's electric vehicle 'revolution' would come at significant cost to the general public, says IEA expert

“The most efficient way to encourage the transition to low carbon transport is with a carbon tax, applied economy-wide, at a level consistent with international peers. Complex incentives targeting specific technologies tend to distort markets and encourage rent-seeking, while subsidies cater to well-off early adopters at significant cost to the general public.

“Governments have a terrible record when it comes to picking winners, particularly in energy and transport. It is far better to leave these matters to investor risk and consumer choice, allowing a consistent price for carbon to create a level playing field with current technology. We should not be subsidising manufacturers, many of whom will fail, and many of whom do not need the subsidies to take the risk in the first place."