New research reveals how EV, emissions mandates are inflating costs for gas-powered cars, utilities

Increasingly stringent Corporate Average Fuel Economy and greenhouse gas tailpipe emissions standards have forced gas-powered vehicle manufacturers to produce more EVs. As a result, this has siphoned auto manufacturers' resources away from gas-powered vehicle production and toward EV production, ultimately pushing the costs of gas-powered cars higher, according a report by the AEI.

If auto manufacturers do not produce enough EVs to meet state and federal standards, they are forced to buy into a credit system to offset their emissions production, inevitably creating another avenue where additional costs are transferred to consumers, according to the report.

"By distorting the market with regulatory credits, subsidies, and behind-the-scenes rulemaking, federal agencies are shifting costs from affluent EV buyers to working-class Americans - while straining a grid that's already under pressure," said Jason Isaac, co-author of the report and the founder and CEO of AEI. "This isn't about consumer choice or energy innovation. It's administrative overreach that leaves Americans paying more to drive and to keep the lights on."

Rebates and subsidies for EV charging infrastructure are driving up base utility rates for consumers as well, the AEI report states. It is estimated that if each EV sold resulted in one in-home or commercial charging infrastructure, the more than 1.1 million EVs sold in 2023 would have received more than $827 million in residential charging tax credits. 

"When you go buy a gallon of gasoline, [taxpayers] are not helping you pay for that gallon of gasoline; all the costs are embedded within a gallon of gasoline," Isaac said. "So the typical EV charge, whatever they pay at the charging station, is only a small portion of the expenses. That charging station itself has received a significant subsidy, both from the state and the federal government, and the utility has come in and increased the infrastructure or improved, enhanced the infrastructure to handle that load, and the rate payers in that particular area are picking up that burden."

The increased costs on gas-powered car buyers and utility rate payers, Isaac said, illustrates the need to get rid of these clean-air mandates. 

"Eliminating these costly EV mandates is exactly the kind of action needed under President Trump's energy emergency," Isaac said. "It would jump-start a resurgence in the American auto industry, lower the price of new vehicles and ease pressure on our electric grid, bringing down energy costs for every household."

Fox News Digital reached out to several EV advocacy groups, including Drive Change. Drive Electric, Plug In America, DriveElectric USA, EVHybridNoire, the Sierra Club and the Electric Vehicle Association, but did not receive a response in time for publication of this story.