Skip to Content
  • Γραφεία

    Γραφεία

    North & Latin America
    • Atlanta
    • Austin
    • Bogota
    • Boston
    • Buenos Aires
    • Chicago
    • Dallas
    • Denver
    • Houston
    • Los Angeles
    • Mexico City
    • Minneapolis
    • Monterrey
    • Montreal
    • New York
    • Rio de Janeiro
    • San Francisco
    • Santiago
    • São Paulo
    • Seattle
    • Silicon Valley
    • Toronto
    • Washington, DC
    Europe & Africa
    • Amsterdam
    • Athens
    • Berlin
    • Brussels
    • Copenhagen
    • Dusseldorf
    • Frankfurt
    • Helsinki
    • Istanbul
    • Johannesburg
    • Kyiv
    • Lisbon
    • London
    • Madrid
    • Milan
    • Munich
    • Oslo
    • Paris
    • Rome
    • Stockholm
    • Vienna
    • Warsaw
    • Zurich
    Middle East
    • Doha
    • Dubai
    • Riyadh
    Asia & Australia
    • Bangkok
    • Beijing
    • Bengaluru
    • Brisbane
    • Ho Chi Minh City
    • Hong Kong
    • Jakarta
    • Kuala Lumpur
    • Manila
    • Melbourne
    • Mumbai
    • New Delhi
    • Perth
    • Shanghai
    • Singapore
    • Sydney
    • Tokyo
    See all offices
  • Alumni
  • Media Center
  • Εγγραφή
  • Επικοινωνία
  • Greece | Elliniká

    Select your region and language

    Global
    • Global (English)
    North & Latin America
    • Brazil (Português)
    • Argentina (Español)
    • Canada (Français)
    • Chile (Español)
    • Colombia (Español)
    Europe, Middle East, & Africa
    • France (Français)
    • DACH Region (Deutsch)
    • Italy (Italiano)
    • Spain (Español)
    • Greece (Elliniká)
    Asia & Australia
    • China (中文版)
    • Korea (한국어)
    • Japan (日本語)
  • Saved items (0)
    Saved items (0)

    You have no saved items.

    Bookmark content that interests you and it will be saved here for you to read or share later.

    Explore Bain Insights
  • Κλάδοι
    Main menu

    Κλάδοι

    • Aerospace & Defense
    • Agribusiness
    • Chemicals
    • Construction & Infrastructure
    • Consumer Products
    • Financial Services
    • Healthcare & Life Sciences
    • Industrial Machinery & Equipment
    • Media & Entertainment
      Κλάδοι
      Media & Entertainment
      • Media Lab
    • Metals
    • Mining
    • Oil & Gas
    • Paper & Packaging
    • Private Equity
      Κλάδοι
      Private Equity
      • Due Diligence
      • Exit Planning
      • Firm Strategy & Operations
      • Portfolio Value Creation
    • Social Impact
    • Retail
    • Technology
    • Telecommunications
      Κλάδοι
      Telecommunications
      • Capital Expenditure
      • Telco Digital Transformation
    • Transportation
    • Travel & Leisure
    • Utilities & Renewables
  • Συμβουλευτικές Υπηρεσίες
    Main menu

    Συμβουλευτικές Υπηρεσίες

    • Customer Experience
    • Sustainability
    • Innovation
    • M&A
    • Operations
    • People & Organization
    • Private Equity
    • Sales & Marketing
    • Strategy
    • AI, Insights, and Solutions
    • Technology
    • Transformation
  • Digital
  • Πληροφορίες
    Main menu

    Πληροφορίες

    • Industry Insights
    • Services Insights
    • Bain Books
    • Webinars
    • Bain Futures
    View all Insights
    Featured topics
    • Artificial Intelligence
    • Managing Inflation
    • Thriving in Uncertainty
    • The Talent Imperative
    • Macro Trends
    • Healthcare Private Equity Report
    • CEO's Guide to Sustainability
    • Technology Report
    • Energy & Natural Resources Report
    • Paper & Packaging Report
    • CEO Insights
    • CFO Insights
    • COO Insights
    • CIO Insights
    • CMO Insights
    View all featured topics
  • Σχετικά με εμάς
    Main menu

    Σχετικά με εμάς

    • What We Do
    • What We Believe
    • Our People & Leadership
    • Client Results
    • Awards & Recognition
    • Global Affiliations
    • Social Impact
    • Sustainability
    • World Economic Forum
    Learn more about Further
  • Careers
    Main menu

    Careers

    • Work with Us
      Careers
      Work with Us
      • Find Your Place
      • Our Work Areas
      • Integrated Teams
      • Students
      • Internships & Programs
      • Recruiting Events
    • Life at Bain
      Careers
      Life at Bain
      • Blog: Inside Bain
      • Career Stories
      • Our People
      • Where We Work
      • Supporting Your Growth
      • Affinity Groups
      • Benefits
    • Impact Stories
    • Hiring Process
      Careers
      Hiring Process
      • What to Expect
      • Interviewing
    FIND JOBS
  • Γραφεία
    Main menu

    Γραφεία

    • North & Latin America
      Γραφεία
      North & Latin America
      • Atlanta
      • Austin
      • Bogota
      • Boston
      • Buenos Aires
      • Chicago
      • Dallas
      • Denver
      • Houston
      • Los Angeles
      • Mexico City
      • Minneapolis
      • Monterrey
      • Montreal
      • New York
      • Rio de Janeiro
      • San Francisco
      • Santiago
      • São Paulo
      • Seattle
      • Silicon Valley
      • Toronto
      • Washington, DC
    • Europe & Africa
      Γραφεία
      Europe & Africa
      • Amsterdam
      • Athens
      • Berlin
      • Brussels
      • Copenhagen
      • Dusseldorf
      • Frankfurt
      • Helsinki
      • Istanbul
      • Johannesburg
      • Kyiv
      • Lisbon
      • London
      • Madrid
      • Milan
      • Munich
      • Oslo
      • Paris
      • Rome
      • Stockholm
      • Vienna
      • Warsaw
      • Zurich
    • Middle East
      Γραφεία
      Middle East
      • Doha
      • Dubai
      • Riyadh
    • Asia & Australia
      Γραφεία
      Asia & Australia
      • Bangkok
      • Beijing
      • Bengaluru
      • Brisbane
      • Ho Chi Minh City
      • Hong Kong
      • Jakarta
      • Kuala Lumpur
      • Manila
      • Melbourne
      • Mumbai
      • New Delhi
      • Perth
      • Shanghai
      • Singapore
      • Sydney
      • Tokyo
    See all offices
  • Alumni
  • Media Center
  • Εγγραφή
  • Επικοινωνία
  • Greece | Elliniká
    Main menu

    Select your region and language

    • Global
      Select your region and language
      Global
      • Global (English)
    • North & Latin America
      Select your region and language
      North & Latin America
      • Brazil (Português)
      • Argentina (Español)
      • Canada (Français)
      • Chile (Español)
      • Colombia (Español)
    • Europe, Middle East, & Africa
      Select your region and language
      Europe, Middle East, & Africa
      • France (Français)
      • DACH Region (Deutsch)
      • Italy (Italiano)
      • Spain (Español)
      • Greece (Elliniká)
    • Asia & Australia
      Select your region and language
      Asia & Australia
      • China (中文版)
      • Korea (한국어)
      • Japan (日本語)
  • Saved items  (0)
    Main menu
    Saved items (0)

    You have no saved items.

    Bookmark content that interests you and it will be saved here for you to read or share later.

    Explore Bain Insights
  • Κλάδοι
    • Κλάδοι

      • Aerospace & Defense
      • Agribusiness
      • Chemicals
      • Construction & Infrastructure
      • Consumer Products
      • Financial Services
      • Healthcare & Life Sciences
      • Industrial Machinery & Equipment
      • Media & Entertainment
      • Metals
      • Mining
      • Oil & Gas
      • Paper & Packaging
      • Private Equity
      • Social Impact
      • Retail
      • Technology
      • Telecommunications
      • Transportation
      • Travel & Leisure
      • Utilities & Renewables
  • Συμβουλευτικές Υπηρεσίες
    • Συμβουλευτικές Υπηρεσίες

      • Customer Experience
      • Sustainability
      • Innovation
      • M&A
      • Operations
      • People & Organization
      • Private Equity
      • Sales & Marketing
      • Strategy
      • AI, Insights, and Solutions
      • Technology
      • Transformation
  • Digital
  • Πληροφορίες
    • Πληροφορίες

      • Industry Insights
      • Services Insights
      • Bain Books
      • Webinars
      • Bain Futures
      View all Insights
      Featured topics
      • Artificial Intelligence
      • Managing Inflation
      • Thriving in Uncertainty
      • The Talent Imperative
      • Macro Trends
      • Healthcare Private Equity Report
      • CEO's Guide to Sustainability
      • Technology Report
      • Energy & Natural Resources Report
      • Paper & Packaging Report
      • CEO Insights
      • CFO Insights
      • COO Insights
      • CIO Insights
      • CMO Insights
      View all featured topics
  • Σχετικά με εμάς
    • Σχετικά με εμάς

      • What We Do
      • What We Believe
      • Our People & Leadership
      • Client Results
      • Awards & Recognition
      • Global Affiliations
      Further: Our global responsibility
      • Social Impact
      • Sustainability
      • World Economic Forum
      Learn more about Further
  • Careers
    Popular Searches
    • Agile
    • Digital
    • Strategy
    Your Previous Searches
      Recently Visited Pages

      Content added to saved items

      Saved items (0)

      Removed from saved items

      Saved items (0)

      WSJ's The Experts

      We’re Incentivizing Electric Cars All Wrong

      We’re Incentivizing Electric Cars All Wrong

      A small but growing number of public entities recognize they need to take a smarter, more assertive approach.

      By James Allen

      • min read

      Article

      We’re Incentivizing Electric Cars All Wrong
      en

      This article originally appeared on WSJ's The Experts.

      Electric vehicles promise to advance cities’ ambitions for cheaper, safer and greener mobility. Even without significant changes in the sources of electricity generation—primarily coal, natural gas and renewables—EVs can still reduce carbon dioxide emissions by 60% compared with internal combustion engines. In the U.S., more than 20% of emissions come from light-duty vehicles, so encouraging EVs could improve air quality and the health of urban residents.

      As battery prices fall, moreover, EVs will soon provide cheaper mobility for people. Factoring in lower maintenance and operating costs, the total cost of ownership for EVs—that is, how much owners spend during a vehicle’s useful life—should reach parity with internal combustion vehicles over the next five years and continue to decrease.

      But there’s a huge problem with the current economic incentives for electrification: Most programs encourage the purchase of privately owned EVs and would fail to realize the greatest potential benefits. Private cars and trucks spend 95% of their time parked, limiting the volume of miles actually electrified.

      Current programs also tend to deploy charging infrastructure based on the patterns of privately owned vehicles. As the number of private EVs grows, most will be charging during peak demand times, such as weekday evenings. Failure to integrate intelligently with the power grid can limit the business case for the charging operator, and could lead to grid instability if too many EVs charge at the same time.

      A small but growing number of public entities recognize they need to take a smarter, more assertive approach, one detailed in Bain & Co.’s recent analysis with the World Economic Forum’s Future of Electricity initiative.

      How? By encouraging electrification of high-use vehicles, including fleets of shared or autonomous vehicles–taxis, delivery trucks, buses and corporate fleets–to increase the volume of miles electrified. This approach includes charging stations that integrate with the electricity grid to facilitate smart charging at the best times. A fleet-focused approach could bring the share of electrified miles up to 35% in some U.S. cities by 2030, Bain estimates, even while 85% of the vehicle stock would still have internal combustion engines. This compares with less than 10% of miles being electrified if public policies keep giving higher priority to personal-use EVs.

      EV fleets run at higher utilization rates than personal vehicles, substantially reducing the cost of mobility and congestion. Combined with more renewable generation, they will charge in hubs at optimal times, sometimes in the middle of the day, when wind and solar generation is most productive, sometimes in the middle of the night, when rates are lowest.

      Smart charging of vehicles would lower the cost of serving peak electric loads. In California, for instance, where cities increasingly rely on solar generation, there could be as many as 4 million EVs on the roads by 2030. In that scenario, charging at optimal times rather than at peak demand would reduce wholesale energy costs by $700 million by 2030.

      Some public and private decision makers have started to encourage electrifying public and private fleets, including mobility-as-a-service, police cars, taxis and college fleets. China has prioritized electrification of city public transport systems, and its stock of electric buses already exceeds 380,000 units. Massachusetts gives monetary incentives to universities to electrify their fleets and deploy charging stations. London now requires all new black cabs to be electric or emission free by 2018. And Oslo plans to have all public vehicles using electricity by 2020.

      Of course, strategies need to be customized to a city’s situation. The right integration of energy and mobility systems will vary based on the energy-generation mix, the shape of the daily electric load curve, the density of the city, current commuting patterns and public transit infrastructure, among other factors.

      In Paris, for example, the public transit system accommodates half of all commutes, so it makes sense to invest in electrifying and connecting EVs to public transit hubs. Contrast this with the San Francisco Bay Area, where most commuters still ride in private vehicles—a pattern that calls for different strategies.

      Ultimately, public officials control and regulate urban mobility. Working with mobility providers, automotive companies and electric utilities, urban and state officials bear the responsibility for catalyzing a fleet-first approach.

      James Allen is co-leader of the global strategy practice at Bain & Co. and co-author of The Founder’s Mentality.

      Authors
      • Headshot of James Allen
        James Allen
        Advisory Partner, London
      Contact us
      Related Industries
      • Advanced Manufacturing & Services
      • Energy & Natural Resources
      • Utilities & Renewables
      Utilities & Renewables
      Electric Cars Could Recharge Growth for Utilities

      The rise of electric and autonomous vehicles creates new opportunities for energy companies.

      More
      Utilities & Renewables
      Electric Vehicles for Smarter Cities: The Future of Energy and Mobility

      Public and private sectors can adapt three principles to converge mobility and energy, enabling cities to provide several benefits to citizens.

      More
      Utilities & Renewables
      Business Breakthrough Barometer 2025

      The annual pulse check from leading businesses on the pace of the net-zero transition.

      More
      Utilities & Renewables
      Southeast Asia's Green Economy 2025 Report

      Unlocking systems for growth and impact

      More
      Utilities & Renewables
      Energy’s Capital Projects Reset: Faster, Smarter, Leaner

      As costs rise and delays abound, executives are rethinking their approaches to capital projects.

      More
      First published in Ιούλιος 2018
      Tags
      • Advanced Manufacturing & Services
      • Energy & Natural Resources
      • Utilities & Renewables

      How We've Helped Clients

      An Environmental Services Company Captures Massive Savings from a Merger

      Read case study

      A roadmap for portfolio growth

      Read case study

      Revitalizing a utility's market position with customer loyalty

      Read case study

      Έτοιμοι να μιλήσουμε

      Συνεργαζόμαστε με φιλόδοξους ηγέτες που θέλουν να καθορίσουν το μέλλον και όχι. Όχι να κρυφτούν από αυτό. Μαζί, επιτυγχάνουμε πετυχαίνουμε εξαιρετικά αποτελέσματα.

      Μείνετε μπροστά σε έναν γρήγορα εξελισσόμενο κόσμο. Εγγραφείτε στο Bain Insights, τη μηνιαία μας επισκόπηση των κρίσιμων θεμάτων που αντιμετωπίζουν οι παγκόσμιες επιχειρήσεις

      *Έχω διαβάσει την Πολιτική Απορρήτου και συμφωνώ με τους όρους της.

      Please read and agree to the Privacy Policy.
      Bain & Company
      Επικοινωνήστε μαζί μας Sustainability Accessibility Όροι χρήσης Privacy Cookie Policy Sitemap Log In

      © 1996-2026 Bain & Company, Inc.

      Contact Bain

      How can we help you?

      • Business inquiry
      • Career information
      • Press relations
      • Partnership request
      • Speaker request
      See all offices