Hacker News new | ask | show | jobs
by nichtich 2979 days ago
I'm a bit surprised nobody has mentioned the fraud[1]. The reason electric bus becomes so popular in China recently is mainly because of government subsidies. Well that's the intended consequence and most people are OK with it.

What's problematic is that the subsidy is a fix amount for certain kind of vehicle. And it turns out bus is more efficient in terms of subsidy/cost ratio. And since the subsidy is a fixed amount, bus maker can cut a lot of corners and make a bare minimum of a bus which may cost even less than the subsidy. Now they can dump these buses to a local government basically free and bribe the operators to drive the buses once a while to receive the subsidy[2].

I mean I'm all for green buses. But if electric buses out-sale electric cars a lot, you have to wonder why. And one obvious reason is buses are mostly bought in large quantities by entities not very concerned about cost/profitability, ie local governments. So it is much easier for bus related fraud than cars facing mostly individual consumers.

[1] https://www.wsj.com/articles/china-fines-five-auto-makers-fo... [2] http://www.sixthtone.com/news/1001382/company-accused-of-run...