While in 2024, the use of an electric car was economically beneficial for a private individual, it was not so for the Israeli economy, according to the results of an examination published on Thursday by the National Economic Council in the Prime Minister's Office.
The aim of the investigation was to shed light on the values in transitioning to electric cars from gasoline-run vehicles, especially with regard to the Israeli economy.
In 2024, the cost of an electric-powered vehicle for the consumer was NIS 3,700 less than a gasoline-run car.
However, due to taxation policy, for the Israeli economy, the cost of an electric car increases by some NIS 740 in comparison to a gasoline-powered vehicle.
According to the results of the investigation, by 2034, remaining with the current taxation policy, the cost of an electric vehicle for the country's economy would be of NIS 1,600 less per year in comparison to a gasoline-powered car.
The consumer will see a further reduction of NIS 3,500 per year.
The report further noted that while in 2024 electric cars were not profitable for the Israeli economy, this quality is set to increase in the coming years as acquisition costs drop.
Meeting government goals
The value of electric-powered cars, the report noted, was in their diminution of greenhouse gas emissions.
Meeting the goals set by the Energy and Infrastructure Ministry regarding the introduction of electric vehicles will bring a benefit of NIS 1.2 billion to the country's economy, in comparison to the base scenario.