Impact of Incentive Policies and Other Socio-Economic Factors on Electric Vehicle Market Share: A Panel Data Analysis from the 20 Countries

Chenlei Xue,Qunqi Wu,Huaguo Zhou,Xingbo Xu,Xueying Wu

doi:10.3390/su13052928

Chenlei Xue, Qunqi Wu + Show 3 more

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https://doi.org/10.3390/su13052928

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Journal: Sustainability	Publication Date: Mar 8, 2021
Citations: 41	License type: CC BY 4.0

Affiliation: Chang'an University, Auburn University

Abstract

Under the strong support of policies and incentives, the global electric vehicle (EV) market has been developing rapidly. However, in the context of the overall EV market boom, the promotion policies and incentives for consumers to adopt EVs differ from country to country. It is worth exploring the key factors that affect market share and adoption of EVs, such as incentives, policies, and additional socio-economic factors. The data on EV market share and information on policies and incentives in 20 countries were collected from the published reports and online resources from 2015 to 2019. Random effects model analysis was conducted to explore the effect of various factors on EV market share. The innovation of this article is to combine incentive policies with socio-economic factors and use panel data to analyze the actual adoption behavior of the global EV market. Results show that the tax reduction policy, charger density, and income have significantly positive effects on the penetration of EVs. Thus, it suggested that government should still maintain tax incentives and focus on the deployment of charging infrastructure. Household income, as a socio-economic factor, also plays an important role in the adoption of EVs. This will help policymakers adjust and improve policy emphasis to promote the adoption of EVs.

Highlights

Today, transportation accounts for nearly a quarter of direct CO2 emissions which is a major contributor to air pollution
Since there were 25,210 fuel cell electric vehicles (FCEVs) worldwide which is significantly lower than the number of battery electric vehicles (BEVs) and PHEVs [55], and that, more than one-third of the global FCEVs is located in the United States, so in this paper EVs refer to battery electric cars as well as plug-in hybrid electric vehicles
The effectiveness of ownership tax benefits (OT) was high, and this indicated that the implementation of this financial incentive will increase the uptake of EVs by 1.781%

Summary

Introduction

Transportation accounts for nearly a quarter of direct CO2 emissions which is a major contributor to air pollution. In order to reduce the emissions from motor vehicles, the transport sector sees the need to transform from conventional fuel vehicles to alternative fuel vehicles that are more environmentally friendly. The key to this shift is the electrification of transport modes, especially for electric vehicles (EVs). EVs can bring many environmental benefits over internal combustion engine vehicles by using one or more electric motors or traction motors for propulsion, which do not require gasoline fuel [1,2].

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