Electric Cars Make More Sense When Gas Hits $4.50 a Gallon

The recent explosion in electric-vehicle models, like the Nissan Leaf, marks the third revival of mass interest for EVs. What will keep the public’s attention from dwindling this time around? It’s all about gas prices, according to a recent Harvard University study. Electric cars make sense to many cay buyers when gas prices stay at or above $4.50 a gallon nationally, the study found. Today’s national average gas price is $3.71 a gallon, according to AAA.

The study says electric cars cost on average $5,377 more than their gasoline counterparts upfront. Despite the savings that come from not filling up at the pump, EVs also cost $4,819 more over the life of the car compared with gas cars.

As the price of battery technology comes down over the next 10 to 20 years and gas prices presumably rise, the cost benefit should continue to increase.

Study: Electric cars won’t catch on until gas hits $4.50 a gallon (USA Today)