The World is Going Electric - no wait - Just China

China is planning to invest $1.5 billion annually in electric vehicles, starting with trial taxi services in Shenzhen and Hangzhou. If all goes as planned, they'll have 500,000 electric vehicles throughout the country by 2015.

An electric taxi in Shenzhen, China

Although the cost of these vehicles is still extremely high - 80% more than its carbon counterparts, the government's unique approach to integrating electric car technologies into society may prove to be just what the industry needs. Their system exposes people to electric car technology without requiring them to make the initial investment. Instead, their 3 yuan fuel surcharge is waived, and trips in these taxis are actually cheaper, incentivizing ridership. Furthermore, these taxi services require the construction of charging stations, which provide necessary infrastructure for the expansion of individual electric vehicle usage.

Yet, it hasn't exactly been smooth sailing. Safety issues have plagued taxis in Hangzhou, and individual consumers still aren't buying electric vehicles.

That said, putting these vehicles on the road and collecting performance and user data will undoubtedly lead to greater testing and improvements. As a result, electric vehicles may become both safe and cost competitive.