In Nevada, 35 percent of all greenhouse gas emissions come from the transportation sector, per the Nevada Department of Environmental Project (NDEP). If you drive a gas combustion engine vehicle, you are part of the problem. We need zero emission vehicles, such as electric vehicles (EVs), to solve this problem. What stands as a barrier to reaching this goal is the nonexistence of a robust used EV marketplace. 

Why do we need a used EV market? Won’t new EVs do the trick? According to a 2019 study by McKinsey, Nevadans purchased used vehicles over new vehicles on a 2 to 1 basis. This is consistent with the numbers in the U.S. market. If we really want to get all Nevadans to make the switch, we need to increase the number of used EVs available.

In 2019, only 2 percent of vehicles sold in Nevada were EVs. But policy makers and regulators have been working on this problem, in part through the Nevada Clean Cars mandate. The standard will require vehicle manufacturers to increase the sale of EVs to no less than 8 percent of all vehicles sold starting in 2025. This requirement will ramp up the supply of EVs sold in the state, which is good, because many of Nevada’s early EV adopters purchased their EVs in CA. Thanks to the Clean Cars initiative, they won’t have to do that anymore — and the state and local municipalities will receive the sales tax now going to California.

There are three additional actions the governor and policymakers should take. The first is to create incentive rebates that can be applied to the purchase of new or used EVs. At present, Nevada does not offer any incentives for consumers to switch over to an EV. If Nevada wants to reach its climate goals, it needs to accelerate the transition to electric vehicles. Nevada would join the company of a handful of states that already offer incentives ranging from $2,500 to a $7,000 tax credit rebate. 

But for low-income or disadvantaged consumers, even this incentive may not be enough. Policymakers should further assist members of those groups by adding a “cash for clunkers” program to help the least fortunate Nevadans sell their gas-powered vehicles. California has a program that allows eligible residents (those who meet income requirements) to receive up to $9,000 in incentives toward the purchase of an EV — and though Nevada is not California, and the dollar amount would likely have to be lower here, it’s still a worthy idea.

The second action policymakers should take is to provide incentives to car dealerships to sell more used EVs. As mentioned above, Nevada Clean Cars mandate used a “stick approach” — mandating that car manufacturers sell more EVs or be in violation of the law. Policymakers could and should now employ the “carrot approach” and provide incentives not only to potential buyers but also to sellers. The more used EVs exist on car sales sites and sales platforms (both physical and digital), the better.

Both of these incentive programs should especially focus on sales in federally designated low-income and disadvantaged communities in specific zip codes. 

Finally, a program is only as good as the intended beneficiary’s awareness of it. The state should increase the funding of education campaigns to raise public awareness of the many benefits of EVs and corresponding incentives. Nevada Clean Cars, a nonprofit already seeking to raise awareness of the regulatory initiative, could spearhead the additional educational messaging. It also could partner with vehicle manufacturers, car dealerships and sales platforms, utility companies, and clean air and environmental advocates to promote the new incentives. 

By properly proceeding with a strong constituency of all the stakeholders previously mentioned, Nevada Clean Cars can be a leading driver of EV transportation in the state.

Cesar Diaz is a distance learning student at the Yale Center for Business and the Environment, an urban planner who works on policy matters at the intersection of clean energy and technology, and a senior public policy manager at ChargePoint, an EV charging provider.  The views expressed here are his and do not reflect his employer’s. He lives in Southern Nevada.