Abstract
Electrification of passenger cars is one of the most popular ways to decarbonize the transportation sector and to reduce local air pollutants. Many researches have tried to examine what will be the driving factors to achieve the widespread adoption of electric vehicles (EVs). In this study, we analyzed the factors for EV adoption with the data of revealed preference from 2013 to 2017 in Korea. Analyses showed that the driving range of EVs and financial incentives have a positive impact on EV deployment. Also, the driving range is found to be the most critical factor explaining the market growth of EVs. The results suggest that technical improvement increases the value of EVs and in turn raises the probability of consumers’ decision to purchase EVs. Financial incentive as well can encourage consumers to buy EVs, however, is not strong enough to create transitions from internal combustion engine vehicles (ICEVs) to EVs.
Highlights
The electric vehicle (Electric vehicles (EVs) refers to PHEVs (Plug-in Hybrid Electric Vehicles) and BEVs (Battery Electric Vehicles), excluding HEVs (Hybrid Electric Vehicles) in this study) (EV)market in the Republic of Korea has formed somewhat later than those in the most developed countries, but even so, the domestic market size is increasing at a rapid pace (Figure 1)
As electric vehicles (EVs) emit no local pollutants and are up to three times as energy-efficient as internal combustion engine vehicles (ICEVs) [53], it is expected that diffusion of EVs would alleviate many of environmental burdens
The result confirms that the driving range and financial incentives such as subsidies and tax exemption have a positive impact on the EV diffusion, and especially, the driving range is the most significant variable explaining the adoption of the EVs
Summary
The electric vehicle (Electric vehicles (EVs) refers to PHEVs (Plug-in Hybrid Electric Vehicles) and BEVs (Battery Electric Vehicles), excluding HEVs (Hybrid Electric Vehicles) in this study) (EV)market in the Republic of Korea has formed somewhat later than those in the most developed countries, but even so, the domestic market size is increasing at a rapid pace (Figure 1). As Korean EV market was still in the early stages of the market development, it seemed that it was a bad decision for government to cut subsidies This outlook has been overshadowed with a total of 11,866 EVs sold only in the first half of 2018, close to the total number of EVs sold in 2017, and many foresee the EV sales volume in 2018 as over 20,000 vehicles. It means that the market has responded unexpectedly to the curtailment despite many studies having already pointed out that purchasing subsidies is one of the most critical factors of EV adoption [2,3,4,5,6,7,8]
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