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What is the future of electric cars?

Yes they are, and they have to be!The automotive industry has been the very example of human advances in technology since the introduction of the first petrol powered internal combustion engine designed by Karl Benz circa 1886. However, the industry is in a revolutionary transition period.With the release of the 2016 global report on electric vehicles, the International Energy Agency announced that 1.26 million electric vehicles hit the world’s roads in 2015. The global growth in the stock of electric cars topped 77 percent in 2015 and 84 percent in 2014, the number of electric vehicles has tripled since 2013.With such rapid growth in the industry fuelled by government backed investments into research and development, there is every indication that electric vehicles are one of the main driving factors needed to curb the impending environmental crisis we now find ourselves in.Given the need for such urgency and promising current statistics, the question remains as to why such expansion is not tenfold. Why are people still reluctant to buy an electric car over a petrol or diesel one? The only logically valid reason for this is because of one's personal preference based on nothing more than the fact of not owning an electric car. Any other reason concerning the technological capability of an electric vehicle being inferior to that of a conventional combustion engine vehicle is a myth. One needing to be dispelled.One major common misconception is that 'Electric cars do not have the range of fuelled cars, therefore they are impractical as an everyday vehicle'. Let’s be clear; if you are driving hundreds of miles as your daily commute, then perhaps an electric car’s range may come into question for you. However, the average person in the US will drive a maximum of 25 miles (40km) per day. A mid-range, Mercedes Benz B class electric drive will drive 124 miles (200km) on the road before it needs to recharged. A Tesla model S can average over 200 miles (321 km). So assuming you are not needing to make a long haul cross state trip every day, the range of an electric car is more than enough. Essentially, you will be able to drive to work, back again, then recharge your car at home. You should actually be able to drive further than your combustion engine counterparts, as most fuelled cars are not filled to the maximum before a journey, whereas most electric vehicles are fully charged at home before any journey.Another common misconception is that because Electric cars are relatively new to the market, they are far too expensive and become unaffordable for the average person. This claim again is unfounded. The Nissan Leaf is one of the most cost effective electric cars in the US that you can currently buy, and it currently stands at $21,510. This point is perfectly illustrated by the Mercedes Benz B class in the UK. The standard petrol version will cost you around £22,000 ($27,000), with the Electric version coming in at £28,000 ($34,500). The £6,000 ($7,300) difference is completely justified by the savings the vehicle makes. The average person, will spend well in excess of £1,000 ($1,250) per year on petrol compared to around £100 ($125) per year for an electric car, subject to your tariff. Plus, you do not have to pay any road tax or London congestion charge with an electric car as it emits zero emissions. Furthermore, you will be entitled to benefit in kind tax for electric vehicles. In addition to this, you may also be entitled to a £5,000 ($6,165) plug in grant from the government. And finally the costs of repair are much lower as you will not have to pay any expensive damaged engine costs. The savings from electric vehicles are also true in the US. In the US, monetary incentives for electric vehicles come in both federal and state issued form. For example, one country wide incentive is that buyers of plug-in hybrids and electric cars benefit from a tax credit of $2,500 to $7,500, depending on the size of the battery in the car. In addition, drivers are entitled to better electricity rates and insurance discounts. As expected California leads the way in generous incentives with its ‘Clean Vehicle Rebate Project’, that offers rebates for the purchase or lease of qualified vehicles. The rebates offer up to $2,500 for light-duty zero emission and plug-in hybrid vehicles that the California Air Resources Board (ARB) has approved or certified.Another common error made is that there are no charging points for electric vehicles. In 2011 there were 1,972 charging ports in the US, this jumped to 6,310 the next year. Today there are an estimated 21,813 charging ports in the US. There are an estimated 168,000 fuel stations in the US, down from 200,000 in 1994. Looking at these trends, there is every indication that Electric cars are the evolutionary ‘next step’ in automotive transportation in the US.In the UK, the statistics are a lot more dramatic and serve as a template of what is to come in the US. Currently there are 11,885 electric polls in 4190 Locations in the UK compared to 8,472 fuel stations in the UK. In 1970 there were an estimated 37,500 fuel stations in the UK. At that rate of decline, carmaker Nissan, believes there'll be less than 7,870 filling stations up and down the country by August 2020. In contrast, the increasing number of public electric vehicle charging 'locations' - which actually means individual posts - is expected to reach 7,900 by the same month in 2020. With these current and predictive statistics and given the fact most people will charge their electric vehicle at home anyway, it is certainly apparent that finding a place to charge your car is not an issue now UK and will actually be easier than finding a traditional fuel station in the not too distant future for the US as well.In sum, my conclusion is three pronged. From current statistics Electric vehicles are increasing dramatically in popularity; and with predictive statistics, they are set to overtake conventional combustion engines by 2027 according to some reports. Secondly, the technology is no longer just prototypical, in the sense that it is not in early production / trial stage as with Autonomous vehicles. The technology has been in production for a while, and is proven. And thirdly, there is an urgency for electrical vehicles. With the world’s oil reserves in ever decline and carbon dioxide along with other harmful gases causing rapid global warming; the need for eco-friendly cars running on electricity admitting zero emissions is huge.Electrical vehicles are no longer just a promising potential solution to the oil / carbon dioxide problem generated by the modern fossil fuelled cars. Electrical vehicles are the future, and they are the now.

What is the "CA Climate Credit" on my PG&E bill?

This is the answer according to Pacific Gas and Electric’s website -California Climate CreditThe California Climate Credit is a bill credit that is part of California's efforts to fight climate change. The credit is from a state government program that requires power plants, natural gas providers and other large industries that emit greenhouse gases to buy carbon pollution permits from auctions managed by the Air Resources Board.Twice a year, millions of California residents receive a credit on their utility bill identified as the “California Climate Credit." The California Climate Credit is part of California's efforts to fight climate change. This credit is from a state program that requires power plants, natural gas distributers and other large industries that emit greenhouse gases to buy carbon pollution permits. The credit represents residential utility ratepayers' share of the payments from the State's program. The credit program was created by the CPUC, which also oversees the program's implementation.Currently, all residential and eligible small business electricity customers of PG&E, SDG&E, SCE Pacific Power and Liberty Utilities receive the credit, as do all Community Choice Aggregator (CCA) customers. In additional, natural gas residential customers of PG&E, SoCalGas, Southwest Gas, and SDG&E also receive the credit. Customers don't need to do anything to receive the credit - it is automatically applied to their bills. The credit amounts vary among utilities, CCAs and from year to year. The electric credit is applied twice a year in April and October, while the natural gas credit only applies once a year in April.If you're not sure whether you're receiving the Climate Credit, the first thing to do is contact your utility or CCA, the same as you would do with any billing questions. That's because although the CPUC oversees the credit and can help with any remaining questions you have, your utility or CCA is best positioned to access your individual records and answer questions about individual accounts.2018 Climate Credit AmountsElectric Bill Provider - Credit Applied to BillLiberty Utilities - $46.16Pacific Power - $159.67PG&E - $27.70SCE - $33.00SDG&E - $31.32Natural Gas Bill Provider - Credit Applied to BillPG&E - $25.45SDG&E - $18.52Southwest Gas - $24.86SoCalGas - $24.01Who is eligible for the Climate Credit?Residential households and small businesses that are customers of the investor-owned utilities (IOUs), as well as cutomers of CCAs, receive the California Climate Credit. Customers will automatically receive the Climate Credit if they have an open account with the utility and are receiving service during the period the Credit is distributed.Residential households that are eligible include:All California residential customers that receive electricity from an investor-owned utility company, electric service provider or community choice aggregation provider. This includes customers of Pacific Gas and Electric, San Diego Gas & Electric, Southern California Edison, PacifiCorp, and Liberty Utilities, and community choice aggregators.All residential customers that receive natural gas from Pacific Gas and Electric, San Diego Gas & Electric, Southern California Gas and Southwest Gas.Small businesses that are eligible include:All California small business customers that receive electricity from an investor-owned utility company, electric service provider or community choice aggregation provider. This includes customers of Pacific Gas and Electric Company, San Diego Gas & Electric, Southern California Edison, PacifiCorp, Liberty Utilities, and all Community Choice Aggregators. Small business customers are non-residential commercial, industrial, or agricultural customers that typically use less than 20 kilowatts (kW) of maximum power in a month. Nonprofit organizations and schools also qualify. These customers are all eligible if their power demand hasn't exceeded 20 kW more than three times in the last year.Why am I receiving a Climate Credit? Do I need to "sign up" for the credit?You are receiving the credit because you are a customer of a utility or CCA regulated by the CPUC, and the credit is a program the CPUC created. You don't need to do anything to receive the credit- It will automatically appear on your bill.Households and small businesses are receiving the Climate Credit to protect them from cost increases and to give people additional opportunities to take advantage of energy and money-saving upgrades that also help fight climate change.Customers of public utilties (like Sacramento Municpal Utility District (SMUD) and the Los Angeles Department of Water and Power (LADWP)) don't get the Climate Credit because the CPUC does not regulate public utilities. The Climate Credit is a CPUC-established program, and it only applies to the investor-owned utilities we regulate.Why does the credit amount vary by utility?The credit amounts do vary between each utility and CCA. Each utility or CCA provides a different amount, but all customers at that utility or CCA will receive the same amount. In other words, PG&E customers receive a different amount than SCE customers do - but every PG&E residential customer gets the same amount.This is because many different factors determine the amount of money available for the Climate Credit, including the amount of GHG allowances sold and the number of customers that are splitting the money.When will I receive the Climate Credit?Residential households:The electric Climate Credit is applied twice per year in the spring and fall - for most customers it will be on April and October bills.The gas Climate Credit is applied once per year in the spring - for most customers it will be on the April bill.Small businesses:The Climate Credit appears on each monthly electric bill.Billing periods vary by utility and may not always coincide with a calendar month. If you don't see a credit on your April or October bill it will appear on the following month's bill.Is the credit amount related to my energy use?Residential households: No, all residential customers of the same utility will receive an equal amount regardless of the amount of energy they use. Whether you receive a credit, or how much you receive, is not connected to the amount of energy you use. You are getting this credit as your share of payment from a state program.Small businesses: Yes. The credit is tied to the amount of carbon pollution costs in small business electricity rates, and the actual credit received each month depends on small business customers' electricity rates and how much electricity they use.What will I see on my bill?Customers will see the following:A line Item "CA Climate Credit" or "California Climate Credit" on their bills with the amount of the credit.A bill message briefly explaining the creditWhat if there is a credit remaining on my account balance after the California Climate Credit is applied to my bill?Any carryover balance will be applied to your next month's bill. If there is a balance, customers may ask for a refund check instead of having the balance applied to your next month's bill.I have a small business. Am I eligible? What size credit will I receive?For the purposes of the Climate Credit, small business is defined as any non-residential customers on a general service or agricultural rate, whose usage doesn't exceed 20 kilowatts in more than 3 months out of the previous 12-month period. In other words, small business means "non-residential customers with usage that is usually relatively low." If you meet these criteria, you receive the small business Climate Credit.The amount you receive is based on your usage and other factors. The credit is tied to the level of carbon pollution costs in electricity rates, and the actual credit received each month depends on small business customers' electricity rates and how much electricity they use.How is the credit amount calculated?Residential households: The utilities receive proceeds from greenhouse gas allowance auctions. Under rules adopted by the California Public Utilities Commission, which regulates California investor-owned utility companies, each utility divides all available funds equally among its residential households.Small businesses: The California Public Utilities Commission adopted formulas to calculate the credits. The amount of the monthly credit depends on your electricity usage that month.If the credit is from the State, and not the utility, why is it on my utility bill?The credit is delivered this way because putting the credit on your bill is the most cost effective way to return it to customers. This approach maximizes the amount of savings each household and small business will receive.I am on the CARE/ESA or medical baseline rate; will I get the credit?Yes. All residential electricity customers of participating utilities (PG&E, SDG&E, SCE, Liberty and Pacific Power) and CCAs get the Climate Credit.I have a second home/multiple residential accounts. Will all of them receive the credit?Yes. All eligible accounts get the credit; it's not limited to one household per person.For how many years will I receive a Climate Credit?Right now, the Climate Credit is expected to continue at least through 2020.Will the size of my Climate Credit change over time?Yes. The size of the Climate Credit depends on factors that change from year to year, but the credit will always be calculated according to rules established by the CPUC.What is the Cap-and-Trade Program?Check out our page dedicated to the Greenhouse Gas Cap-and-Trade Program.Will my utility rates increase as a result of Cap-and-Trade?California has a variety of programs to reduce greenhouse gas (GHG) emissions, one of which is the Cap-and-Trade Program. Energy providers face GHG costs when they produce electricity from fuels that put GHGs into the atmosphere. Natural gas utilities face GHG cost associated with their deliveries of natural gas to customers. These costs will be reflected in customer bills - in generation rates for electric customers and in transportation rates for natural gas customers. The Climate Credit will help to offset bill increases for customers and give people additional opportunities to invest in energy and money-saving upgrades.What is AB 32?The California Global Warming Solutions Act of 2006, or Assembly Bill (AB) 32, is California's law to reduce carbon pollution and fight climate change. AB 32 mandates that California reduce its greenhouse gas (GHG) emissions to 1990 levels by 2020, and then maintains that reduction (about 15% from current levels).Which government agency is in charge of enforcing greenhouse gas reduction laws?The lead agency is the California Air Resources Board (ARB). This is also the agency that sets state standards to clean the air and promote clean vehicles and clean fuels.Where can I find more information about California's efforts to fight climate change?Here are a few useful links:How can you do more to save energy: Join the movement at Energy Upgrade CaliforniaGeneral information: California Climate Change PortalAir Resources Board Climate Change PageLearn about the CPUC's role in the Greenhouse Gas Cap-and-Trade ProgramFind information about Industry Assistance, a credit program for emission-intensive and trade-exposed (EITE) industrial utility customers.

Is China worried about factories shifting out to lower wage countries? Will automation keep China's economic growth high in the future?

1 Introduction There are three major reasons why China might be quite relaxed about the possibility of factories moving to other countries. First, other countries do not understand Shimomuran-Wernerian no-cost investment credit economics, so Chinese industrialists would not be able to borrow investment money in lower wage countries at the low repayment rate they do in China. Second China is shifting some of its factories to lower wage countries in order to get round the Trump tariffs and as a normal part of competent Chinese economic management. And third, China is returning to its 11th century Wang Anshi grassroots and is developing an inventive and innovative culture based on SME establishment, growth and development.2.1 The Investment Level of ChinaAs the CIA World Factbook has recorded, Chinese equipment investment has often been almost 50% of China’s GDP. To be more precise, that “Factbook” (great in numerical data, worthless in its continuing advocacy of the non-delivering Washington Consensus Macroeconomics) states that the level of “investment in Fixed Capital” in China was 43.3% of GDP in 2017.Since 1975. China has lifted a billion people out of poverty using Wang-Anshi/Dr Osamu Shimomura/Wernerian investment credit creation economics. As these three outstanding historically significant investment credit creation economists have shown, and as Professor Richard Werner has brilliantly proven using Granger Predictive Causation Correlation in its most modern HENRY II format, high levels of state-created no-cost BoJ investment credit is the statistically significant Granger causative leading indicator of subsequent Japanese economic growth. And as Werner has also shown, the Japanese Asset Bubble of 1986 onwards was due to speculative BoJ credit creation again using Granger Predictive Causation Correlation in its most modern HENRY II format - and there’s the way to avoid future credit crunches. The world may “little note nor long remember what I say here”, but it will never be able to forget what Wang Anshi did to create the world’s first and then largest industrial economy in 11th century China, nor how the Great Ming Empire became the largest economy in the world in the 15th century, peaking in the rule of the Yongle Emperor (1420–1424) nor what Dr-Osamu-Shimomura/Hiyato-Ikeda did to double Japanese living standards between 1960 and 1966 and nor (I repeat) what China has done since 1975 which has lifted a billion of its people of its people out of poverty.Richard Werner shared his meta-economics HENRY II results with the class of mainly Central Bankers attending the ARBE Conference 3–7 September 2018.It was such a pity that the seven people I invited - five Chinese economists, one major Indian economist involved in NITI (the National Institute for Transforming India) and a great Mexican economist (whose secretary sent me a polite letter explaining he was too busy to attend) - could not attend. Each of these might have learned a great deal and the conversations at that programme were enlightening. I would have loved to speak to these non-attendees and I enjoyed many discussions with those who did attend. Incidentally, the accommodation and breakfasts enjoyed by the programme attendees was provided ar Brasenose College, Oxford, and you can see the entrance to that College on the right hand side of the above photograph.But I digress.I estimate that the Chinese economic managers have created about 25% of GDP annually as no-cost PBoC investment credit from about 1975 until 2014. I think the level of PBoC investment credit creation has now fallen by about 3% to 4% pa to within the range of 21% to 22% pa of GDP perhaps partly because of the enormous PBoC commitment to financing the B&RI/OBOR programme.2.2 The Effect of the Trump Tariffs on Chinese Economic Planning2.2.1 Major US Companies have Moved To ChinaChina provides so many of the essential parts of some large productive US industries that some of these - which can move - have relocated to China. The Tesla car plant (500,000 units a year, electric motor driven vehicles) which was planned to be established in North Carolina has now moved to China to avoid paying 25% more for most of its sub-assembly Chinese-produced parts. BMW have committed to raise their annual Chinese production of electric cars to 500,000 from 300,000 for similar reasons. Harley Davidson has also relocated its major production from the USA to China for the same stated reason. And there are doubtless many other companies which have moved but are less visible in their media profile.See George Tait Edwards's answer to What will the economic growth figures released today mean for future economic growth and jobs in the United States? and for forecast electric car production in 2021 see Statista - The Statistics Portal at Production of EVs in selected countries in 2021 | Statistic which contains the chart2.2.2 But Most US Service Companies Cannot Relocate Away From Their Customers There are tens of thousands of local US companies that cannot relocate, because their customers are American, and which are operationally dependent on Chinese imports of productive plant and equipment or basic items. Much of the US catering industry, a great deal of the USA’s highly expensive private healthcare and medical industry (which uses, among other things, mainly Chinese-produced syringes) , and many other such are stuck with continuing to operate with obsolete kit or with paying the 25% surcharge and charging their customers more for their services. Trump has either miscalculated or has been very badly informed. SeeGeorge Tait Edwards's answer to How reliant is the US on China?2.2.3 It is such a pity that President Trump and his advisors understand how to reward his rich followers but has no idea about how to increase the growth rate of the US economy. See Trump’s “YUGE” Tax Cut for the Rich which shows how Trumps’s tax cuts alter income distribution in favour of the richest in the USAThese tax cuts produce the incredible result that over 25% of the annual output of the US economy is now being paid to the top 1% of families. It is the most stark illustration so far about how Trump’s agenda is to reward his rich supporters and punish America’s poor while doing nothing at all to increase America’s economic growth rate. See George Tait Edwards's answer to Why does Trump say America first but his policies do the very opposite?Quite how an overspending America is going to afford a $240 billion deficit in the US budget (about 1.2% of the 2018 US GDP of $19.8tr) every year, when the USA is already running at a debt level of about 100% of GDP and a balance of payments deficit now of about 3% a year, is unclear. The FED is not keen on that position and Trump has fallen out with the US Government’s banker. SeeGeorge Tait Edwards's answer to When will President Trump's economic policies begin to affect the US economy?3 It is reported that China is shifting some of its factories to lower wage countries in order to get round the Trump tariffs and as normal part of competent Chinese economic management.I can’t keep track of this, because the Chinese know that if they provide that information, then the Trump Adminstation would take action against the countries where that shift has occurred, which would defeat their objective. But it is certainly happening although it’s very difficult to monitor.4 Not Automation But Invention And Innovation Drives China’s Giant EconomyOne of the things that the Chinese culture has historically done better than any other is invention and innovation. See George Tait Edwards's answer to Does China really steal other countries' technology? andGeorge Tait Edwards's answer to What are some examples of economic growth?Nations can grow rapidly and can even sometimes dominate the world economy when they act in the interests of ALL of their people and make financial arrangements which fund the local SME development from invention to innovation. That’s how 11th century and 15th century China did that, how Britain’s provincial banking system (about 80 banks in Scotland, almost 900 in England) financed their world-dominating SME-driven industrial miracle from 1700 to 1880, how FDR’s USA produced its SME-driven economic miracle (1938–1944, using over 20,000 US local banks), and how Dr Osamu Shimomura/Hayato Ikeda doubled the prosperity of the Japanese people from 1960 to 1966.And that’s how China is now once again becoming what it was previously, the most inventive and innovative economy in the world. Automation helps but the talents and capabilities of the Chinese people and the Shimomuran-Wernerian economic understanding practised in China is about 95% of the answer.5 Answers5.1 China Need Not Be Worried About Factories Shifting Out To Lower Wage Countries Because These Countries Have No Domestic Source of Cheap Central Bank Created Investment Capital.5.2 It is not Automation that will keep China's economic growth high in the future but the Chinese Shimomuran-Wernerian macroeconomics which funds the conversion of individual invention into factory floor innovation and then upsizes these factories to become world-beating industries.

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