Analyzing electric vehicle uptake based on actual household distributions: A contribution to empirical policy formulation

Abstract

This paper assesses the influence of policy-relevant factors for electric vehicle (EV) uptake, while considering the related solar-panel context, using the 2020 Residential Energy Consumption Survey for the U.S. Our results suggest that the link from household income to EV uptake is relatively weak; we find the link from education to EV uptake is stronger. Three policy reforms are suggested based on our analysis of actual household data. If income is used in determining subsidies, then increased targeting of policy support to lower income levels may be warranted. Policymakers may also consider alternative approaches, rather than relying on income thresholds. Policy bundling is also suggested, where households can use subsidies for their chosen energy investment, rather than separate schemes for solar panels and EVs. This flexible approach could be appropriate for renters, who were less likely to have at least one of an EV or solar panels by up to 3.5 percentage points.