California is the largest market for motor vehicles in North America, with 40 million residents and limited mass transit. In addition, its considerable pollution problems, created largely from the automobiles in the 1960s and ’70s and particularly acute relative to other US locations, make it an ideal market for EVs, according to the study. Thus, it is motivated to promote EVs by a substantial blend of industrial policy and risk management.

France takes the same approach as California, according to the study. Additionally, France already has a large amount of “green” energy from domestic nuclear production — about 70 percent of its domestic production share. Also, France and California are both home to significant players in the EV industry, including investors, who will benefit from a vibrant global EV industry. Thus, France and California see EVs as a technology that can foster economic development and environmental progress.

Policies that improve the energy efficiency of urban transportation systems could help save as much as $70 trillion in spending on vehicles, fuel and transportation infrastructure between now and 2050, according to a report from the International Energy Agency published this week.

Photo Credit: Oregon Department of Transportation via Flickr