Abstract

Several developed countries have recently provided electric vehicle consumers and producers with financial subsidies. There has been some empirical research on the impact of government subsidies on the consumers’ purchase of electric cars. However, little analytical research on the government subsidies for the electric car market exists. This research analyzes the impact of the government financial s ubsidies on the electric car price and technology level as well as the consumers’ adoption of electric cars. This resea rch also suggests that the government should subsidize only the electric car market to further improve the electric car technology.

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