2. Have the most polluting vehicles fund EV incentives for new vehicles
Impose a fee on the most polluting new vehicles and use the revenues generated to fund EV purchase incentives. This approach would offer consumers a choice: they can purchase a cleaner car and get a EV incentive or choose a more polluting car and help support other Canadians in going electric.
More Policy Details
Establish a feebate system where purchases of the most polluting new vehicles would be subject to polluter-pay fees that would fund ZEV purchase incentives (see #1 above). Average and less-than-average polluting vehicles would face no fee. This approach would offer consumers a choice: they can purchase a low-polluting vehicle and avoid the fee or they can choose a higher polluting vehicle and help support other Canadians in going electric. Until all categories of vehicles are available in an electric version, exemptions can be proposed for big families and people who need bigger vehicles for work.