Arguments For and Against Electric Subsidution Subsidution in New Zealand

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In the 21st century, electric vehicles are invented which means a new energy resource can be used instead of fuel for vehicles.

[Q] Ministry of Transport (2019) defined it as ‘ Vehicles charged from an external electricity source’. This energy resource is more environmental-friendly and can be renewed. There are a large number of people think that the government in New Zealand should support electric vehicles by subsidy. As electric vehicles are subsidised, the number of buyers will increase. However, some people disagree with this suggestion that they think the government can use this money in other areas such as infrastructure also they found that the electric vehicles subsidies cost more to reduce emissions than in other ways.

Therefore, this essay will discuss both two points and explain why electric vehicles should be subsidised by the government in New Zealand by the following points. Firstly, it helps with the development of the economy. Secondly, it is good for the environment. Thirdly, it will cut down the accident casualty rate.

[Arg 1] At first, subsidise on electric vehicles help develop the economy. As the government subsidies on the electric vehicles, the number of the vehicles that use fossil fuel will reduce also the imports of oil will decrease due to the increasing number of electric vehicles which means the usage of fossil fuel will decrease.

[S] The statistics published by the Ministry of Business, Innovation & Employment ( Data tables for oil, 2018 ) shows that the supply from local of oil is 52.330 million barrels and 10.953 million barrels is indigenous production. The imports of oil are 63.341 million barrels which shows that the imports are more than the local production. It is obvious that the imports of oil will decrease following the usage reduction. The reduction in imports of oil will cause the local industries to be more competitive. Moreover, unemployment will decrease because the reduction in imports will encourage the local market so there are more jobs will be provided.

[C-Arg 1] Whereas some people think the money used on subsidy can be taken into other areas such as infrastructure.

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[P] Auckland Transport is leading a project to build light rail between Auckland city central to Auckland Airport and West Auckland (Light rail). It is an important project because Auckland Airport and the nearby areas are playing an essential part in the economy of not just Auckland but also New Zealand. Once the project is completed, it helps with delivering people which means it encourages people to move from city to suburbs so it is in favour of the whole economy develops. If there is more money invested in it, it can make the projects time be shorter.

[Ref 1] However, the latest information shows it seems to be a lack of progress. This project is one of the the biggest projects in New Zealand. It is particularly complex because it needs to work along with a number of the city’s main traffic arteries. It is hard work to New Zealand which means it will be time-consuming to get achievements so more money invested does not mean a shorter time.

[Arg 2] Another reason that the government should subsidy on electric vehicles is good for the environment. Drive on an electric vehicle produce no emissions so more electric vehicles are used is good for the environment. The government has been trying to reduce the air pollutant emissions and there are three targets are formed by the Ministry for the Environment (Emissions reduction targets, 2019).

[P] Reduce emissions to 5% below 1990 levels in 2020, reduce emissions to 30% below 2005 levels in 2030 and reduce emissions to 50% below 1990 levels in 2050. Therefore, subsidy helps the government achieve these targets.

[C-Arg 2] However, some people point out that the government’s subsidy is not efficient to reduce emissions.

p] A report (Energy Efficiency and Conservation Authority, 2015) suggests that each electric vehicle saves 1.8 tonnes of CO2 compared to a normal car which means the government’s subsidies cost 25 times more than the costs that use other ways to reduce emissions if current carbon price of NZD $10 per tonne is applied.

[Arg 3] Last but not least, the government’s subsidy will cut down the accident casualty rate. Drive an electric vehicle is more safely than a normal car because there is no engine, gas tank, and all of the supplemental components of the fuel system. It saves lots of space that can be better used for passengers and safety.

[Q] Moreover, in the article posted by the Office of U.S Department of Energy stated that ‘EVs tend to have a lower center of gravity than conventional vehicles.’ This means that electric vehicles are less likely to roll over and less likely to cause casualties if an accident happened.


In conclusion, electric vehicles should be subsided by the government of New Zealand. It is beneficial to both society and economy by helping development with the economy, helping build a better environment, and reducing the accident casualty rate. Therefore, the government should subsidy on electric vehicles.

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