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Electric Car Verdict: Another Government-Subsidized Bust

By Robert Bradley Jr. -- September 26, 2012

When government tries to pick losers and winners, it typically picks losers. Why? Because in a free market, consumers pick winners to leave the losers for government.

The U.S. energy market is rich with examples. In the 1970s, synthetic fuel projects that went bust, and the Synthetics Fuel Corporation was terminated with much of its funds still unspent. In the same period, the California Energy Commission decided (see p.24) that methanol-powered (M-85) vehicles were the transportation future for their state. But advances in reformulated gasoline and onboard vehicle technology removed the benefits of converting natural gas, wood products, and coal into this transportation fuel. The methanol fad quietly went away.

EV Largesse: $2.2 billion

It seems like only yesterday that electric vehicles (EVs) were a pillar of Obama’s government-knows-best transportation strategy.