This executive summary lays out highlights from the report聽Reducing Barriers to Competition for Electric Vehicle Charging in Canada, written by Max Bell School聽Master of Public Policy聽students Tirzah Commey, Soomin Han, Nina Hern谩ndez Jayme, Darragh Joyce, and Michael Kynaston as part of the 2024 Policy Lab.
Access the summary and presentation below, and read their full report聽here.
This report outlines what the Competition Bureau (CB) can do to encourage decision makers to reduce barriers to competition in electric vehicle (EV) charging across provincial and territorial boundaries in Canada. Given that adoption for EVs is closely intertwined with demand for electric vehicle chargers (EVCs), both areas must be addressed to reduce barriers to competition in the EVC market. As such, the recommendations in this report drive outcomes that address both the supply and demand side barriers to competition in the EVC market.
Given that barriers to competition in the EV charging market are complex and interconnected, the EVC market is not considered lucrative enough for firms to enter. Supply and demand side factors work in conjunction to deter firms from entering the EVC market. Industry stakeholders, along with the CB, often referred to this complexity as the 鈥渃hicken and egg鈥� dynamic, where firms resist market entry due to low profit yield, and consumers resist EV adoption due to inadequate EVC infrastructure, affordability concerns and perceptions around EVs and EVCs.
Insights gained through stakeholder engagement and comprehensive research directly contributed to the formation of the suggested recommendations for the CB. These recommendations aim to increase consumer confidence and public demand toward EVs and EVCs, to incentivize EVC-focused firms to enter the market and improve the competitive landscape for Canadian consumers. They also seek to address the supply side issues for firms looking to enter the charging market. Improving regulation and land-use policies related to EV charging and lowering input costs to reduce barriers to market entry. These recommendations are informed by international case studies with high rates of EV adoption such as the United Kingdom (UK), the Netherlands, and the United States (U.S.). While these examples cannot be directly compared to Canada's unique use-case, these case studies provide helpful insight into which policies have worked well internationally. The implementation plan included in this report plots recommendations along a feasible timeline for decision-makers from the CB, the federal government, provincial, and territorial governments. The cost-risk matrix ensures that these bodies are fully informed around the costs and risks associated with the implementation of each recommendation. As a result, this will lead to increased demand for both EVs and EVC, facilitating entry of firms into the EVC market across Canada, representing the successful reduction of barriers to competition in EVC across provincial and territorial boundaries.
Summary of Recommendations
Consumer Confidence
- Advocate to Natural Resources Canada (NRCan) to design and launch a national awareness program, the National Electric Vehicle Awareness Initiative (NEVAI), that will support and amplify the Zero Emissions Vehicle Awareness Initiative (ZEVAI) in addressing negative consumer perceptions around EVs and EVCs.
- Advise NRCan to condition Zero Emission Vehicle Infrastructure Program (ZEVIP) funding for recipients to ensure reliability standards and data standardization, which will increase consumer confidence, raise demand for both EVs and EVCs and thus incentivize firms to enter the market.
Mass EV Adoption
- Advise Innovation, Science, and Economic Development (ISED) to incentivize EV manufacturing and EV battery production firms to reduce the size of lithium-ion batteries and increase affordability of EVs in the 2024 Fall Economic Statement鈥檚 EV Supply Chain Investment Tax Credit Plan details.
Interjurisdictional Collaboration
- Establish an inter-provincial convention to encourage energy regulators to adopt a rural electric vehicle discount rate initiative, modeled after Ontario鈥檚, to reduce operational costs for firms and widen their potential profit margins.
- Collaborate with provincial, territorial, and municipal jurisdictions to amend and establish building codes and land use policies to facilitate readiness and installations of EVCs in geographic and social areas with disproportionately less access to EVCs.
Download the full version of this report聽here.
础耻迟丑辞谤蝉:听, , , , and
