Transportation and Beneficial Electrification Drive Major Economic Opportunities in Illinois
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Transportation and Beneficial
Electrification Drive Major
Economic Opportunities in Illinois
Economic Benefits to Illinois
• The American Lung Association’s 2020 “Road to Clean Air” report projected that the introduction of
widespread electrification could result in $3,155,062,850 in avoided health impact costs in 2050 in Illinois
alone, and $2,875,776,986 in the Chicagoland area alone.1
• A 2017 study by M.J. Bradley & Associates found that revenue from increased electricity sales for EV
charging would be passed onto utility customers in Illinois, putting downward pressure on future rates,
delaying or reducing future rate increases, and reducing customer bills.2
• The M.J. Bradley & Associates study
projected that if the number of plug-
in electric vehicles (EVs) registered in
Illinois increased from approximately
12,300 today to 726,273, the net present
$43B
in cumulative net benefits from greater personal
value of cumulative net benefits from electric vehicle use in Illinois by 2050
greater personal EV use in Illinois will
Source: Electric Vehicle Cost-Benefit Analysis, M.J. Bradley & Associates (2017)
exceed $12.2 billion statewide by 2050.3
• The same study projected that if there were 1.2 million plug-in EVs in Illinois by 2030, rising to 4.8 million
in 2040, and 6.6 million in 2050, the net present value of cumulative net benefits from greater personal EV
use in Illinois could exceed $43 billion statewide by 2050.4
• The EV market has experienced exponential growth over the past six years, with sales growth of 22 percent
for the US and 25 percent for Illinois between 2014 and 2019. With a headquarters in Normal, Illinois,
Rivian—one of the most active EV startups—collected a total of $2.9 billion in 2019. Since then, the
company has raised $8 billion, in addition to closing a $2.65 billion investment round led by funds and
accounts advised by T. Rowe Price Associates in January of 2021, bringing Rivian’s reported value to more
than $27 billion.5,6,7
• In 2018, Rivian had just 250 employees across the country. By June of 2020, the company expanded to 400
employees at their Illinois plant alone. By June of 2021, Rivian plans to expand to 1,000 employees in Illinois.8,9
• In February of 2020, clean transportation innovator EVBox opened a North America headquarters in
Libertyville, Illinois, creating nearly 120 jobs at the new location.10
1
• The Chicago Transit Authority’s (CTA) rollout of two electric buses in 2014 was one of the first major tests
of electric bus technology in a cold winter climate. The vehicles have saved the CTA more than $24,000
each year in fuel costs and $30,000 each year in maintenance costs.11
• The CTA has recognized the environmental, health, and cost benefits of electric buses, reporting that the
reduction in harmful emissions by operating just one electric bus reduces respiratory diseases and other
illnesses at a value of $55,000 annually or $660,000 over the expected 12-year lifespan of a bus.12
Job Creation
• In 2019, the U.S. Energy and Employment Report estimated that there were more than 250,000 American
workers employed in the manufacture, sale, repair and maintenance of electric, hybrid and hydrogen
fuel-cell vehicles.13
• In addition to the jobs directly created through locally-generated renewable energy, growth in clean energy
can create positive economic “ripple” effects. For example, industries in the renewable energy supply chain
will gain new customers, and unrelated local businesses will benefit from increased household and business
incomes.14
• A 2020 report estimates the manufacturing of fuel-efficient vehicles is associated with 14,776 jobs in
California alone, as increasing standards on fuel economy have prompted increased investment by auto
manufacturers in development of new technologies, the retooling of old factories, and the building of new
ones. The U.S. Department of Energy also estimates about 259,468 jobs nationally are associated with the
manufacturing of alternative fuel vehicles.15
• California Governor Gavin Newsom’s recent executive order requires only zero emission passenger cars
to be sold in California by 2035. Last year, California’s EV sector was valued at more than $7 billion with
nearly 300,000 jobs created in-state.16
• A 2017 study looking at the influence
of the transition to EV transportation
259K
on EU jobs found that jobs will change
in the automotive industry, but there
will be a net increase in employment
estimated jobs associated with manufacturing across the economy of 500,000-
alternative fuel vehicles in the U.S. 850,000 jobs. Estimates of how many
U.S. Department of Energy (2020) jobs will be lost in automotive are highly
uncertain but it seems likely in the
medium term to 2030 none or few.17
2
Impact of EVs in Other Markets
• On October 1, 2020, the Canadian government announced it is allocating $1.5 billion to “accelerate the
adoption of zero-emission buses and charging infrastructure so Canadians can have cleaner commutes.”
The funds are part of a larger three-year, $10-billion “Growth Plan” that will also invest in clean energy
projects, broadband expansion, agricultural irrigation and building retrofits. The spending is expected
to create roughly 60,000 jobs along the way and help shore up a COVID-19 battered economy.18
• On September 22, 2020, New York announced its first EV fast-charging hub located in the Mid-Hudson
Valley. Completed as part of the state’s EVolve NY program, a New York Power Authority initiative to
aggressively accelerate adoption of EVs by providing drivers with quick, easy and convenient charging
options. The initiative is projected to stimulate $1.5 billion in new public and private investments and
provide more than $2.6 billion in consumer benefits and economic opportunities. It will use funding from
investor-owned utilities to add even more charging stations that will be built in key locations to support
expanded EV use with a goal of deploying more than 50,000 chargers by 2025.19
• American automotive manufacturers are embracing California’s EV mandate as a way to stay competitive
nationally. Ford, for example, has committed to a target of becoming 100 percent carbon neutral by 2050.
The automaker has begun searching for locally-sourced renewable energy to power its facilities across the
United States. The first factory to receive this treatment will be the River Rouge, CA, F-Series production
facility, which is currently undergoing a $700 million renovation to prepare it for production of the new
all-electric F-150 electric pickup truck.20
• A 2017 study by the European Federation for Transportation & Environment, analyzing the influence
of electrification in the EU found that the net effect of electrification on the EU economy is positive, even
in countries with significant automotive industries, for three key reasons:21
• Extra technology in the motor vehicles
sector provides high quality jobs in research
•
and development.
Innovative technologies require additional
$65M
infrastructure investment. estimated annual benefits generated by a fleet
• Substantially lower lifetime running costs of electric buses in the Los Angeles MSA
of electric cars over their lifetime result in Environmental Benefits from Transportation Electrification (2020)
higher consumer spending.
• A 2015 study on electrification in Oregon estimated impacts for several common scenarios, concluding that
each EV decision can increase state and local tax revenue between $426 and $1,503 over a 10-year period,
under today’s conditions.22
• A 2020 study analyzing the environmental benefits from transportation electrification estimated that in
comparing a fleet of electric buses to a fleet of new diesel buses, electric buses generate annual benefits of $65
million in the Los Angeles metropolitan statistical area (MSA) and more than $10 million in six other MSAs.23
• In 2017, the Twin Rivers Unified School District Transportation Department in Sacramento, California,
became one of the first school districts in the country to deploy electric school buses. The vehicles produced
a 75-80 percent savings on fuel costs, exceeding the district’s most optimistic expectations. The district
reports a total savings of $15,000 per year on energy and maintenance costs, and believes its experience
proves that electric school buses can be a reliable and cost-effective alternative to diesel buses.24
3Avoided Health Costs
• Widespread transition to zero-emission transportation technologies could produce emission reductions
in 2050 that could add up to $72 billion in avoided health harms, according to the 2020 American Lung
Association’s “Road to Clean Air” report.25
• The “Road to Clean Air” report also projected that the introduction of widespread electrification could avoid
264 deaths, prevent 4,106 asthma attacks and save 18,735 workdays per year.26
• A 2016 study estimated that the avoided health costs associated with EVs, from reduced emissions of fine
particulate matter that can cause early death, cardiovascular issues, respiratory damages and other harms,
amounts to nearly $1,700 over the lifecycle of each vehicle.27
• A 2021 report from University of Illinois at Chicago found that Illinois' transportation sector is responsible
for approximately one-third of all the state’s carbon emissions. The study suggests that supporting and
incentivizing electric vehicles (EVs) will have immediate air quality benefits, in particular for disadvantaged
Black, Indigenous and People of Color (BIPOC) communities, which continue to be negatively impacted by
pollution.28
Consumer and Individual Benefits
• There have been over 1.4 million plug-in vehicles sold in the US since mass market introduction in 2010
and EV owners have increasing choice – there are over 50 EV models at price points for every consumer.29
• For individual drivers, there are motivations to purchase an EV beyond societal benefits. One key motivator
for buyers is the appeal of lower maintenance and fuel costs over the lifespan of the vehicle. According to
the U.S. Environmental Protection Agency (EPA), with the latest models of EVs, drivers can save up to
$1,000 per year in fuel costs and nearly $1,500 in maintenance costs over the life of the vehicle.30
• A report by the National Urban League showed
the importance of prioritizing EV access in
1.4M underserved communities because such areas
can benefit the most from the clean air and
plug-in vehicles have sold in the U.S since cost-saving benefits of EVs. Residents of low and
mass market introduction in 2010 moderate income communities and communities
Counter Arguments Against EVs, Electric Drive of color are more likely to live near busy roads
Transportation Association and freight hubs, where exposure to pollution
from heavy-duty vehicles and freight is greater.31
• A 2021 report by the International Council on Clean Transportation found that savings from EVs relative
to income are significantly higher for low-income households, non-White households, and households
in areas with higher levels of pollution. For car owners in the lowest-income quintile, savings from
switching to EVs amount to $1,000 per household annually, or 7 percent of income, by 2030. Given these
benefits from EVs are higher in less dense car-dependent areas that also tend to have lower housing costs,
electrification could provide low-income households with more options for affordable housing.32
4• The American Lung Associations' 2020 “Road to Clean Air Report” found that people of color are 1.5x more
likely to live in a county with at least one failing grade for air quality and 3.2x more likely to live in a county
with a failing grade for unhealthy ozone days, particle pollution days, and annual particle levels.33
• According to 2020 data from Cox Automotive, the average price of electric cars was $55,600 in 2019, down
from $64,300 in 2018.34
• Motorists can save as much as $14,500 on fuel
costs over 15 years by driving an EV instead
of a similar one fueled by gasoline, according
$14.5K
estimated savings on fuel costs over 15 years
to an analysis conducted by researchers at for motorists who drive an EV
the U.S. Department of Energy’s National
Source: NREL: News Release, Research Determines Financial Benefit
Renewable Energy Laboratory and Idaho from Driving Electric Vehicles (2020)
National Laboratory.35
• Current longer-range battery electric vehicles (BEVs) are expected to maintain their value about as well as
comparable internal combustion engine (ICE) vehicles, on average, over the next five years.36
• Plug-in hybrid electric vehicles (PHEVs) are expected to hold their value as well as conventional hybrids
of the same vehicle class, on average, over the same period.37
• A 2020 study looking at the health impacts of EVs found that shared automated vehicles (AVs) have the
potential to lower vehicle insurance, vehicle registration fees, parking permits and other costs that coincide
with private ownership.38
5Sources
1 American Lung Association: Road to Clean Air – Electric Vehicle Report (2020)
2 M.J. Bradley & Associates: Electric Vehicle Cost-Benefit Analysis (2017)
3 Ibid.
4 Ibid.
5 M. Vinkhuyzen: 240 EV Companies Raised ~$17 Billion In 2019 (2020)
6 M. Wayland: EV start-up Rivian raises $2.65 billion in new funding round led by T. Rowe Price (2021)
7 B. Miller: Rivian to open electric-vehicle showroom in Fulton Market (2021)
8 R. Channick: Rivian plans a hiring surge for the June launch of its electric truck. But a legal battle with Tesla looms (2020)
9 R. Denham: Searching for Clues Into Rivian's Electric Vehicle Future (2018) & R. Channick: Rivian plans a hiring surge (2020)
10 EVBox: EVBox announces the lease of North American headquarters and production facility outside Chicago, IL (2020)
11 J. Horrox, M. Casale: Electric Buses in America, Lessons from Cities Pioneering Clean Transportation (2019)
12 Respiratory Health Association: Electrification of CTA Buses, Health Implications of Inaction (2020)
13 National Association of State Energy Officials and Energy Futures Initiative: 2020 U.S. Energy & Employment Report (2020)
14 Environmental Protection Agency: Assessing the Multiple Benefits of Clean Energy: A Resource for States (2010)
15 Next10: Clean Transportation, An Economic Assessment of More Inclusive Vehicle Electrification in California (2020)
16 M. Petersen: Newsom's EV executive order will help make California breathable again (2020)
17 European Federation for Transportation & Environment: How will electric vehicle transition impact EU jobs? (2017)
18 E. Jarratt: Federal government announces $1.5-billion for zero-emission buses and charging infrastructure (2020)
19 Governor Andrew Cuomo (press release): Statewide EVolve NY Charger Network to Expand Use of Electric Vehicles and Make Fast
Charging More Accessible and Convenient (2020)
20 R. Stumpf: Ford On California's 2035 EV Order, 'We Won't Concede the Future to Anybody' (2020)
21 European Federation for Transportation & Environment: How will electric vehicle transition impact EU jobs? (2017)
22 E. Korejwa: The Returns to Vehicle Electrification, An Assessment of the Economic and Budgetary Impacts of Electric Vehicle Adoption
in Oregon (2015)
23 S. Holland, E. Mansur, N Muller, A. Yates: Environmental Benefits from Transportation Electrification, Urban Buses (2020)
24 J. Horrox, M. Casale: Electric Buses in America, Lessons from Cities Pioneering Clean Transportation (2019)
25 American Lung Association: Road to Clean Air – Electric Vehicle Report (2020)
26 American Lung Association: Road to Clean Air – Electric Vehicle Report (2020)
27 I. Malmgren: Quantifying the societal benefits of electric vehicles (2016)
28 UIC Energy Initiative: Guiding Principles for Beneficial Electrification of Transportation (2021)
29 Electric Drive Transportation Association: Counter Arguments Against EVs
30 I. Malmgren: Quantifying the societal benefits of electric vehicles (2016)
31 National Urban League: The Digital Revolution: Electrification & Smart Communities The Benefits and the Barriers (2020)
32 International Council on Clean Transportation: When might lower-income drivers benefit from electric vehicles? Quantifying the eco-
nomic equity implications of electric vehicle adoption (2021)
33 American Lung Association: Road to Clean Air – Electric Vehicle Report (2020)
34 B. Crothers: Prices Are Coming Down For Electric Cars, The Most Affordable EVs Fall 2020 — Tesla Model 3 Vs The Rest (2020)
35 NREL: News Release, Research Determines Financial Benefit from Driving Electric Vehicles (2020)
36 Ibid.
37 Ibid.
38 E. Choma: Assessing the health impacts of electric vehicles through air pollution in the United States (2020)
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