The Future of Electric Vehicles in Asia

Alicia Garcia-Herrero ()
Additional contact information
Alicia Garcia-Herrero: Chief Economist for Asia Pacific at Natixis
Authors registered in the RePEc Author Service: Alicia Garcia Herrero

No 2022-64, HKUST IEMS Thought Leadership Brief Series from HKUST Institute for Emerging Market Studies

Abstract: Why so much attention is being paid to electric vehicles (EVs) in the green transition? The main reason is that the technology already exists to help governments reduce emissions as at reasonable costs. By pushing the shift towards EVs, governments can buy time to develop the technology to reduce emissions in other sectors at a reasonable cost. A second reason is that the EV sector offers a great industrial opportunity, not only for those who have traditionally produced cars but also for newcomers. Who is leading the race? The EU and China are so far leading but in different ways. The EU was the first to encourage the demand for sustainable cars, and to a lesser extent to produce them. China encourages productions with subsidies and is expected to benefit from the huge potential demands Alicia Garcia Herrero Adjunct Professor for Science and Technology at HKUST Senior Research Fellow at BRUEGEL The Future of Electric Vehicles in Asia from Asia. China also leads in battery components and controls the supply of related raw materials. The more batteries become a bottleneck to production, the more China can lead the race. Can the EV industry become another geopolitical battlefield? Components for EV batteries could easily become another geopolitical standoff and, possibly, a new bottleneck in the global supply chain. Countries that have benefited from Europe's leadership position in the automotive sector need to get their act together by starting production and ensuring the supply of their components. As for Asia ex-China, it is time to think of stepping up production of EVs and batteries to avoid excessive reliance on Chinese exports.

Pages: 4 pages
Date: 2022-05, Revised 2022-05
New Economics Papers: this item is included in nep-cna, nep-ene, nep-env, nep-sea and nep-tre
References: Add references at CitEc
Citations:

Downloads: (external link)
https://iems.ust.hk/assets/publications/thought-le ... -hkustiems-tlb64.pdf First version, 2022 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hku:briefs:202264

Access Statistics for this paper

More papers in HKUST IEMS Thought Leadership Brief Series from HKUST Institute for Emerging Market Studies Contact information at EDIRC.
Bibliographic data for series maintained by Carla Chan ( this e-mail address is bad, please contact ).