The Economic and Environmental Dynamics of Electric Vehicles in the USA

This research investigates the interconnected economic and environmental impacts of electric vehicle (EV) adoption in the United States. Using a mixed-methods approach that integrates market data analysis, policy review, and environmental modeling, it examines how factors such as purchase price differentials, operating cost savings, tax incentives, and infrastructure investments influence EV market penetration. The study evaluates environmental outcomes including reductions in greenhouse gas emissions, improvements in urban air quality, and potential strains on the electricity grid during peak demand periods. It further analyzes how legislative measures— such as the Inflation Reduction Act—affect both consumer adoption and industry growth. By comparing EV performance and lifecycle impacts to conventional internal combustion engine vehicles, the research identifies key drivers for sustainable adoption and offers policy recommendations to align economic incentives with environmental benefits. As the U.S. seeks solutions to address climate change while maintaining economic growth, electric vehicles have emerged as a pivotal technology with dual potential for environmental improvement and economic transformation. This thesis explores how EV adoption influences national and regional economies through job creation, supply chain shifts, manufacturing investments, and infrastructure demands. It also examines critical environmental considerations, including reduced air pollution, lower carbon emissions, sustainable battery sourcing, and the development of recycling systems to address the environmental footprint of lithium, cobalt, and nickel extraction. The analysis considers challenges in integrating EVs into existing energy grids, highlighting the need for smart charging infrastructure and renewable energy expansion. Ultimately, the work provides a comprehensive assessment of the barriers and opportunities in the EV transition, offering a roadmap for policymakers, industry leaders, and communities to foster a cleaner, more resilient, and economically viable transportation future in the United States.