Some commentators have suggested that Korean automakers Hyundai and Kia will be the leaders in electric vehicle production. But they may see their biggest innovation and productivity gains outside of North America, possibly in Europe or India.
Keep in mind that climate change is a global problem; cutting back on U.S. emissions will do only so much. This legislation could well lead to lower emissions in the U.S. but make them marginally harder to achieve in the rest of the world, thereby reducing its effectiveness.
It is no mystery why American legislation would have provisions that subsidize American consumers and businesses. But political expediency is an explanation, not an excuse. Climate change is a global problem that demands global solutions.
Tyler Cowen is a Bloomberg Opinion columnist. He is a professor of economics at George Mason University and writes for the blog Marginal Revolution. His books include The Complacent Class: The Self-Defeating Quest for the American Dream.