Transport Canada figures showed the two provinces with the most substantial rebates for electric vehicles accounted for 74% of national sales last year.According to Blacklock’s Reporter, the department acknowledged it relied on rebates for “increasing the number of zero-emission vehicles on the road.”In a submission to the Senate National Finance committee, Quebec and British Columbia together accounted for 45,037 out of 60,626 electric vehicle sales last year, which makes up 74% of the total sales.In Quebec, rebates can go as high as $7,000. In British Columbia, income-tested buyers can receive rebates of up to $4,000. These provincial incentives are provided in addition to the $5,000 federal rebates introduced in 2019.“Transport Canada will continue to provide incentives for the purchase of eligible vehicles that reduce air pollution and greenhouse gas emissions and support a greener transportation system for Canada,” Ryan Pilgrim, assistant deputy transport minister, earlier testified at the Senate committee. “As a result of these incentives, we are increasing the number of zero-emission vehicles on the road by making them more affordable to Canadians.”“Provinces that have additional incentives, Québec and British Columbia, are significantly higher than the other regions,” said Pilgrim. “Ontario is doing well. Yukon has a new incentive program. Provinces with additional incentives are doing better than others that do not.”In 2018, Ontario cancelled its Electric and Hydrogen Vehicle Incentive Program that paid buyers rebates of up to $14,000. Ontario sales last year numbered 11,396 vehicles, about a third of sales in Québec (31,807 vehicles) and fewer than British Columbia (13,230).Rebates in different provinces vary, ranging from $2,500 in Newfoundland and Labrador to $3,000 in Nova Scotia and $5,000 in Yukon, New Brunswick, and Prince Edward Island. Electric vehicle sales in provinces without incentives are relatively low.Transport Canada reported that last year, 295 cars were sold in Saskatchewan without rebates, 463 were sold in Manitoba and 1,588 were sold in Alberta.In 2022, the department did not calculate the total rebate payouts under federal and provincial plans. However, the cost of federal rebates was $280,111,613.According to a Regulatory Impact Analysis Statement from the department of environment on December 31 2022, they allocated $2 billion for federal rebates.Cabinet proposes to ban the sale of gas and diesel-powered passenger vehicles by 2035. The electric mandate was “expected to lead to a loss of consumer choice as the non-zero emission vehicles which are preferred by some will eventually be phased out,” said the 2022 analysis.“Furthermore, zero-emission vehicles are expected to generally cost more than non-zero-emission vehicles and this vehicle price increase could lead to a reduction in the quantity of vehicles purchased,” said analysis. “The magnitude of these consumer welfare losses is difficult to estimate.”
