The Hidden Business Impacts of EV Credits

Friction in the Transition to EV

As futurists working with companies to understand the impact of climate change on their businesses, we are analyzing the second- and third-order impacts of the components of the Inflation Reduction Act (IRA). Take one component of the IRA as an example: the electric vehicle (EV) credit. While the credit’s intended consequence is reduced U.S. reliance on carbon-based fuels, the second- and third-order consequences of the EV credit will cause friction as our nation transitions.

This friction comes from what Alvin and Heidi Toffler termed forces and anti-forces; these are conditions that either help (forces) a disruptive event occur or create limits (anti-forces) for its occurrence. To get smart on these next-level implications, we asked our fellow futurist Jennifer Karppinen to share her insights. Jennifer’s thinking shows us that the EV credit creates new pathways for our nation and our industries. And, with those new pathways come uncertainty. Read the full article here.