How to maximize the environmental benefits of EVs

According to the EPA, almost 30 percent of greenhouse gas emissions come from transportation, and more than half of those come from personal vehicles. One of the most impactful ways customers can lower their carbon footprint is from behind the wheel, but there are numerous factors that make sustainable car-shopping more confusing than it should be.

As a new era of car-buying dawns, especially amid a national microchip and staffing shortage, dealers can — and should — step up and educate customers about how to more sustainably buy a car.

Most environmentally minded customers want to know: "Are electric vehicles really better for the planet?" The simplest answer is, unsurprisingly, yes. A recent study found that driving EVs, like Teslas, reduces the greenhouse gases relative to the average gasoline-powered vehicle in over 95 percent of the world even after accounting for the environmental impact of manufacturing EVs and the fossil fuels used to generate electricity.

That said, the reduction in greenhouse gases from EVs can change significantly based on four criteria:

1. Where the vehicle is located

2. Its lifetime mileage

3. The type of EV being considered

4. The kind of gasoline-powered car being replaced.

In fact, if these factors don't all line up right, trading in a gasoline-powered clunker for a new EV could actually be worse for the environment. Moving forward, make the strongest pro-EV case to an uncertain buyer by focusing on their location and the miles they expect to drive over the car's lifetime.

In 2020, roughly 60 percent of America's electricity came from fossil fuels, including coal, natural gas and petroleum, while about 20 percent came from renewable energy, including solar and wind. Even though coal tends to burn "dirtier" than gasoline, natural gas burns a bit "cleaner" (25 percent fewer greenhouse gases per thermal unit than gasoline), and renewables don't release greenhouse gases at all. So driving an average EV indirectly releases only 0.3 pounds of greenhouse gases per mile, three times fewer than the average gasoline-powered car. But not all cars are the same, and not all electricity grids are the same — some states rely more on coal for their electricity, while others defer to cleaner renewables and natural gas.

Because there aren't a lot of studies comparing actual makes and models of cars in varying locations, my team of sustainability experts compared EVs from the last four years to the average gasoline-powered car and found that all 173 EVs on the market were a better option in 48 states on a mile-per-mile basis. In the remaining two states (West Virginia and Wyoming), more than 150 EVs were the more climate-friendly option. If someone is choosing between an average car and an EV, the emissions per mile from an EV will almost always be lower.

However, things get more complicated when we include gasoline-electric hybrids. In eight states — Hawaii, Indiana, Kentucky, Missouri, North Dakota, Utah, West Virginia and Wyoming — the highest-performing hybrid vehicles can be better for the environment than almost all EVs. Of course, if a customer has at-home renewable energy, such as solar panels, directly charging their vehicle, the EV is always the right move.

Skeptics cite the enormous environmental impact of manufacturing EVs and, specifically, their lithium batteries. While making EVs creates 60 percent more greenhouse gases than making traditional cars, the greenhouse savings from driving an EV eventually pays off that "carbon debt." — scientists have estimated after only two to four years of driving. In fact, the longer an EV is driven, the more sustainable it becomes relative to gas-powered vehicles.

When you charge an EV matters almost as much as where the car is. Charging a car at night — between 10 p.m. and 6 a.m. — can lower its carbon footprint. That's because this is considered an off-peak electricity time, when many electricity providers try to prioritize using more sustainable energy generation. If buyers' fears persist, remember that grids are rapidly becoming less reliant on the "dirtier" coal, so EVs will likely become an even more sustainable choice per mile in every state over the coming years.

The strongest pro-EV case comes down to two factors: buyers' location and the miles they expect to drive over the car's lifetime. By having even basic knowledge about how your customers can lower their carbon footprint from behind the wheel, you'll become a more effective seller while keeping an eye on the environment. It's a win-win.