"Demand for U.S. electric vehicles will decrease by 27% if tax credit is abolished"

The abolition of the U.S. Inflation Reduction Act, the IRA-based EV tax credit, would reduce demand for electric vehicles by 27%, according to estimates.

U.S. University of California at Berkeley Professor Yosef Shapiro and Duke University Professor Felix Tintelnot estimated that if the tax credit disappeared, the annual number of electric vehicle registrations in the U.S. would be reduced by 317,000 compared to the previous one, Bloomberg reported on the 20th.

They added that the abolition of the tax credit would have little impact on internal combustion locomotive sales due to the small proportion of electric vehicles in vehicle sales in the United States.

The abolition of the EV tax credit was expected to increase gasoline consumption by 155 million gallons in the first year and 7 billion gallons in the decade.

The increase is 5% of the typical 136 billion gallons of gasoline consumption in the United States.