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Study: Electric cars won't catch on until gas hits $4.50 a gallon

By Chris Woodyard, USA TODAY
Updated

Electric cars won't catch on with most consumers until they are competitive with conventional cars on cost, range and fueling convenience, according to a new Harvard University study.

The study, "Will Electric Cars Transform the U.S. Vehicle Market?" by Henry Lee and Grant Lovellette at Harvard's Kennedy School of Government, finds that plug-in electric hybrids, which have a gas engine in addition to batteries, are an average of $5,377 more expensive than gasoline-powered cars. All-electric vehicles cost $4,819 more over the life of the car.

Costs should fall over the next 10 to 20 years as batteries become cheaper and gasoline becomes more expensive, the study finds. Electric-vehicle sales will improve if gas hits an average of $4.50 a gallon and if battery technology improves enough to increase range at a lower cost.

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