Introduction
The use of gasoline engines causes significant danger to the environment, which can harm people and could harm Australia’s sustainable development programs. To ease the damage from such gas emissions into the atmosphere, the government of Australia has developed a unique strategy for introducing zero-emission vehicles (ZEVs) and products that use solar energy. These programs need to be critically reviewed to determine their effectiveness and benefits.
Electric Vehicle Strategy as a Key Incentive for ZEV Purchases
One of the main incentives for buying ZEV is the federal government’s electric vehicle strategy. It aims to ensure that by 2030, all cars in the country that citizens buy are electric (Lucas, 2021). The Australian Bureau of Statistics showed data that in 2020, sales of new electric cars in the country amounted to only 0.6% of all new cars (Electric Vehicle Council, 2020). This indicates that this sector needs to be developed significantly.
The main factor that can entice people to buy ZEVs is their cost, which is currently higher than that of traditional cars. To remove this obstacle, the government, in the mentioned strategy, introduced several financial incentives, such as cutting taxes and benefits for ZEV holders (Lucas, 2021). Thus, it will be possible to influence the situation significantly, as people will become more motivated to buy electric vehicles, preferring to save money on car maintenance in the future.
However, this program is subject to severe criticism because it is not large enough and does not have sufficient funding. This is a strong argument as it is essential to consider the current position of electric vehicles in the Australian market, which is relatively insignificant (Broadbent et al., 2019). The benefits of owning an electric car should be obvious and represent not only tax benefits but also discounts on the purchase of a car. In addition, an effective solution could also be the launch of a trade-in program for old cars with an internal combustion engine when buying ZEV.
The Importance of Solar Energy as an Alternative to Gasoline
Another crucial alternative energy source used is products powered by solar energy instead of gasoline. The government has also introduced incentive programs to make it easier for people to install solar panels (Li et al., 2020). In 2020, 2.56 million homes in Australia installed solar panels for personal use, representing 21% of all households (Solahart, n. d.). In this case, one of the main factors in the transition of people to this type of energy is the cost of the panels, which is relatively low. The government’s encouragement to install solar systems has also had a significant impact on people’s opinions, and thus, installations of solar panels have started to grow substantially.
Despite all the initiatives taken by the government, there are still specific problems with the country’s transition to electricity. For some consumers, installing solar systems or purchasing a ZEV can remain prohibitive. The government should introduce noticeable benefits for vulnerable segments of the population that will help them switch to electric energy sources. Implementing programs to support and promote electricity use must also consider the concept of the free market and competition.
Incentives for citizens to buy ZEV can significantly shift the demand curve to make products more affordable. In the analysis of aid programs, equilibrium is essential because, in the free market, the quantity of a product and the price are determined by the intersection of curves that form the equilibrium point (Galchynsky & Zhuravel, 2019). A substantial shift in one of the curves may also affect this point, resulting in changes in the quality of the deficit or profitability for producers.
Conclusion
In conclusion, it should be said that the government’s initiatives to transfer the population to ZEV and electrical sources are the right decisions that need improvement. Many aspects of stimulation strategies are not convincing enough. Accordingly, they will not be able to achieve the desired result by the planned date, which may lead to the loss of public funds allocated for the programs. In addition, with strong motivation, there are also risks of distorting market opportunities, which can lead to uneven distribution and social conflicts.
Reference List
Broadbent, G. H., Metternicht, G., and Drozdzewski, D. (2019). ‘An analysis of consumer incentives in support of electric vehicle uptake: An Australian case study’, World Electric Vehicle Journal, 10(1), 11. Web.
Electric Vehicle Council. (2020). State of electric vehicles. Web.
Galchynsky, L. J., and Zhuravel, A. (2019). ‘Assessment of the Methodology for Studying the Pricing Mechanism in the Transition Time of the Ukrainian Electricity Sector to the Free Market Principles’, Journal of Business Administration Research, 2(2). Web.
Li, H. X. et al. (2020). ‘A review on renewable energy transition in Australia: An updated depiction’, Journal of cleaner production, 242. Web.
Lucas, A. (2021). ‘Investigating networks of corporate influence on government decision-making: The case of Australia’s climate change and energy policies’, Energy Research & Social Science, 81. Web.
Solahart. (n. d.). Why Go Solar? Web.