Subsidies For Electric Vehicles Research Articles

How the United States solved South Korea’s problems with electric vehicle subsidies under the Inflation Reduction Act

How the United States solved South Korea’s problems with electric vehicle subsidies under the Inflation Reduction Act

Driving a sustainable road transportation transformation

Driving a sustainable road transportation transformation

Examining influence factors of Chinese electric vehicle market demand based on online reviews under moderating effect of subsidy policy

Increasing the market penetration of electric vehicles (EVs) is an important step toward reducing carbon emissions in transport and achieving the 'double carbon' target. Currently, the public acceptance of EV is significantly low in China; thus, EVs have not yet become the mainstream of the new vehicles sold. Based on online review sentiment analysis, we investigated the public's perception of EV attributes, and their impact on Chinese EV sales. The public comments on the EV attributes of four brands—Volkswagen, NIO, Xiaopeng, and BYD—were obtained from Autohome and analyzed for sentiment, with the sentiment scores of the corresponding attributes as the independent variables and the monthly sales of EV during 2019–2021 as the dependent variables. A fixed-effects regression model with panel data was constructed to analyze the relationship between the public perceptions of EV attributes and EV sales. Considering the trend of Chinese government subsidies for EV in recent years, a moderating effect model was constructed with government subsidy policy as the moderating variable, sentiment perception as the independent variable, and EV sales as the dependent variable. The results of the study showed that the public perception of the four attributes of EVs—comfort, manipulation, space, and cost performance— significantly impact EV sales. The subsidy policy moderates the relationship between the public's perception of EV attributes and EV sales. The results of this study also reflect that the public is more concerned with the four attributes of comfort, manipulation, space, and cost performance when purchasing EVs. From a practical perspective, by understanding the public perception of EV attributes, government policy makers and EV marketers can appropriately adjust and change their existing policies and marketing strategies for promoting EVs.

Economic Problems with Subsidies for Electric Vehicles

The use of motor vehicles in Australia generates external costs. The external costs are associated with government expenditure on road infrastructure, traffic congestion and road accidents as well as pollution. A subsidy for electric vehicles will reduce the pollution external cost, and more so as the share of electricity generated from fossil fuels declines. However, the subsidy‐induced increase in motor vehicle use will increase the other external costs. Also, the subsidy and the fall in excise tax revenue collected will add to the budget deficit. The phase‐in of electric vehicles provides an opportunity to reform special taxes and charges on the use of motor vehicles. The current ad hoc and long time ago imposed government taxes and charges on motor vehicles should be replaced with explicit taxes to internalise each of the external costs of motor vehicles.

Where will go for electric vehicles in China after the government subsidy incentives are abolished? A controversial consumer perspective

The environmental benefits of Electric Vehicles (EVs) vary greatly depending on the local power structure. A realistic question is, after the Chinese government completely abolished subsidies for EVs in 2022, whether consumers are willing to take over from the government and pay extra for the perceived green attributes of EVs? The scant literature barely provided valued information. We, explore whether consumers consider EVs as a green product based on micro-survey data. Following that, we investigate the influencing factors behind the willingness of consumers to pay for the green attributes of EVs in a scenario where subsidies are completely abolished. Based on a large sample (2454), the results show a reasonable but disappointing conclusion that consumers' perception of EV's green attributes is weak and vague, and only significant when consumers' awareness evolves from an attitude and social norm to a social responsibility. The burden of government subsidies for EVs cannot be transferred to consumers under the background of subsidies is completely abolished. We conclude by urging the government to formulate effective regulatory measures for vehicle manufacturers to further reduce the cost of electric vehicles, and publicize the EVs' indirect environmental benefits from a long-term future perspective.

Empirical analysis of the depreciation of electric vehicles compared to gasoline vehicles

The depreciation pattern of passenger vehicles is an important input parameter for economic considerations of buyers and other stakeholders such as financial insti-tutions. Due to their technical specifications and uncertainties in their degradation and life expectancy, it seems plausible that electric vehicles depreciate differently to conventional vehicles. This paper contributes to existing research in the economics of electric vehicles by analyzing the depreciation of electric vehicles along several countries and segments and compares it to gasoline vehicles by empirical analysis of public available data of 24,000 used vehicle sales. The results show that vehicles have a degressive depreciation relationship over the age of the vehicle, but that elec-tric vehicles have a substantially higher depreciation of 1.16% per month (13.9% per annum) compared to gasoline vehicles with 0.87% per month (10.4% per annum). Consequently, research into the economics of vehicles and budgeting considerations should apply a different depreciation rate for electric vehicles than for conventional vehicles. The resulting difference in depreciation to gasoline vehicles imply adapta-tion in economic models of insurance and leasing companies and gives governments the opportunity to adapt subsidies for electric vehicles to become more efficient.

Terminated local subsidy on electric vehicle adoption during the COVID-19 pandemic: The case of Chongqing City

Chongqing, one of the four municipalities directly under the Central Government in China, terminated local subsidies for electric vehicles (EVs) on June 26, 2019. Shortly after the termination, EV adoption in China was affected by the coronavirus disease (COVID-19) pandemic. However, little research studies on whether the terminated local subsidy has a lasting impact on EV adoption, especially during the pandemic. Using EV adoption data from Chongqing and 44 other cities in China, this study aims to fill this gap by first proposing a new method to estimate the unobservable data of the treated unit in the preintervention periods to obtain accurate results. This study then also estimates unobservable data for more conservative results. The findings show that the terminated subsidy has had a significant positive impact on EV adoption during the COVID-19 pandemic compared to the situation where a local subsidy was never provided. The results show that in Chongqing, during the first five months of the pandemic, terminated local subsidy helped reduce the loss of EV adoption by approximately 3141 units when accurately estimated, and approximately 1696 units when more conservatively estimated. These findings help to understand the role of subsidies both during implementation and after their termination.

The impact of different incentive policies on new energy vehicle demand in China's gigantic cities

License plate control and preferential policies are both significant for promoting New Energy Vehicles (NEVs) in China, and it is important to be aware of the impact of different policies on NEV demand. This study first conducts a survey based on questionnaires answered by 572 residents from Beijing and Shanghai. The conditional-logit model and mixed-logit model are then utilized to analyze the impact of different incentive policies (i.e., auction, lottery and queueing), vehicle attributes, and consumer attributes on China's NEV demand in gigantic cities. The results show that, i) the incentive effect of license-plate auction for purchasing NEVs is better than that of license-plate lotteries and license-plate queueing. ii) there is an evident promotion by the tax exemption policies in Beijing and Shanghai. iii) people hope that the rate of change in subsidies for battery electric vehicles (BEVs) is tied to BEV recharge mileage. iv) among those who have a high demand for purchasing a vehicle, their primary purpose is to commute to work. v) those who have BEV, live in other cities, or have urgent purchasing needs are likely not to choose NEVs. Policy implications have been proposed to promote NEVs in China's gigantic cities.

What is the problem? The obstacles to the electrification of urban mobility in Mediterranean cities. Case study of Valencia, Spain

The transport sector is answerable for around a quarter of the global CO2 emissions sent into the atmosphere, and 50% of the greenhouse gases in the cities. Considering a staggered introduction of renewable sources in the electricity mix, the introduction of electric vehicles (EVs) in the urban transport network arises as a necessary environmental solution. However, their integration is facing a wide range of barriers, many of them only qualitatively known, or uncertain. This paper presents a multicriteria methodology to assess such obstacles to the electrification of urban transport of Mediterranean flat medium cities. This analysis considers context analysis, literature review, and the application of the Multi Criteria Decision Making Method: Analytic Network Process, with the aid of a panel of experts representing quadruple helix involvement (Government, Business, Society and Academia). As a case study, the city of Valencia (Spain) was chosen, which has been in a deep transition of mobility in recent decades. Results revealed that the most influential barriers turned out to be the insufficient subsidies for EVs’ development, the battery autonomy power and the CapEx of batteries. Moreover, private passenger transport followed by freight transport ranked as the most affected urban transport alternatives.

How the U.S. Renewable Fuel Standard could use garbage to pay for electric vehicles

The U.S. Renewable Fuel Standard (RFS) is a key federal program shifting the nation's transportation fuel mix towards lower-carbon alternatives. A 2014 update to the standard included certain types of renewable electricity as qualifying fuels, supporting vehicle electrification within the RFS for the first time. This study investigates the potential under existing regulatory authority to expand deployment of low-carbon waste-to-electricity pathways, yielding revenue that could be used to subsidize electric vehicle (EV) sales or to support other RFS-aligned climate and transport-sector goals. We find that by accounting for drivetrain efficiency in credit allocation and creating a centralized entity to accrue credits, the RFS could generate $8.7 to $24 billion in revenues annually that could be used to provide EV subsidies of $3600 to $9200 or to otherwise accelerate transport electrification. The economic potential for qualifying waste-derived bioelectricity production could meet EV fleet demand to at least 2029. Absent a federal Low Carbon Fuel Standard, or other technology-neutral fuel policy, the RFS could effectively support widespread vehicle electrification. Expansion of waste-derived electricity could mitigate or increase pollutant exposure for some populations, so policy design and implementation must pay close attention to environmental health, justice, and equity.

How Innovative Characteristics Influence Consumers’ Intention to Purchase Electric Vehicle: A Moderating Role of Lifestyle

Electric vehicles have been identified as a viable option for optimization of the energy structure to foster energy conservation and a reduction in emissions, as well as to promote the development of a sustainable economy. Recently, China announced that the financial subsidies for electric vehicles will be gradually withdrawn, and many incentive policies will be revised, indicating that the electric vehicle market has transformed from a policy-driven to a market-driven structure. Therefore, we study the elements affecting consumers’ purchase intention in the early stage of electric vehicle availability to provide a theoretical reference that can be used in China to continue to stimulate market diffusion of electric vehicles based on the innovation diffusion theory and planned behavior theory. The current study explains the associations among the innovation characteristics, perceived risk, and purchase intention in relation to electric vehicles and details the moderating effect of lifestyle on fashion consciousness, environmental consciousness, and price consciousness. This paper investigates 529 potential consumers in Beijing, Shanghai, and other places, and AMOS and SPSS were used to perform quantitative analyses. The results show that innovation characteristics exert an obvious effect on purchase intention based on the mediating variable of perceived risk. Fashion consciousness significantly moderates the relationship between relative advantage and perceived risk, and environmental consciousness has a significant influence on the relationship between technology compatibility and perceived risk. Price consciousness plays the smallest role in this process. In practice, the findings suggest that practitioners can promote electric vehicle consumer purchase intention by using psychological activation techniques to improve the attitude and educational interest in relation to this product. It is also suggested that, as part of the strategy, government services should be improved.

Measuring the equity impacts of government subsidies for electric vehicles

A shift to electric vehicles (EV) is seen as one of the main methods to decarbonise the transportation sector. However, issues have also been raised regarding charging infrastructure, EV reliability and range, as well as the battery environmental and social credentials. Notwithstanding governments, intergovernmental organisations, and research entities have ploughed ahead to promote this transition, but the challenge is the uptake and public acceptance. Grants and financial subsidies have been developed to facilitate this shift. Our study investigates the characteristics of the private EV household charger population using a regression model and spatial analysis to determine the influences of income, car ownership and economic status on EV take up rates. Data on the installation of EV household chargers are used in this paper as a proxy for EV ownership, due to data limitations. The results indicate that 1) urban areas are more likely to see higher concentrations of EV ownership, 2) an income and equity gap exists between those that have adapted electric mobility. This finding is very important because it suggests that lower income categories may have a financial barrier to shifting to EVs.

Analysis of Consumers’ Willingness to Accept of Government Subsidies for Electric Vehicles

Environmental sustainability is being increasingly emphasized, with the issue of air pollution again being a major concern. Electric vehicles are increasingly playing an important role in solving air pollution problems, and thus the electric vehicle industry and consumption are receiving special attention from the government, which has formulated a policy of subsidies for the development of the electric vehicle industry and consumption. In this paper, contingent valuation method (CVM) was used to conduct a statistical analysis of a questionnaire survey on the willingness of consumers to accept EV subsidies in Nanyang City, Henan Province, China. The estimated consumer willingness to accept the BEV subsidy is 26.505 RMB and the willingness to accept the PHEV subsidy is 24,867 RMB. The conclusions from the logit model analysis can provide policy recommendations for the government to better promote the development of EV industry and consumption.

Is Pollution Reduced or Redistributed? The Impact of Electric Vehicle Subsidies in China

Is Pollution Reduced or Redistributed? The Impact of Electric Vehicle Subsidies in China

Future Paths of Electric Vehicle Adoption in the United States: Predictable Determinants, Obstacles, and Opportunities

This paper identifies and quantifies major determinants of future electric vehicle demand to inform widely held aspirations for market growth. Our model compares three channels that will affect electric vehicle market share in the United States from 2020 to 2035: intrinsic (no-subsidy) electric vehicle demand growth, net-of-subsidy electric vehicle cost declines (e.g., batteries), and government subsidies. Geographic variation in preferences for sedans and light trucks highlights the importance of viable electric vehicle alternatives to conventional light trucks; belief in climate change is highly correlated with electric vehicle adoption patterns; and the first $500 billion in cumulative nationwide electric vehicle subsidies is associated a 7%–10% increase in electric vehicle market share in 2035, an effect that diminishes as subsidies increase. The rate of intrinsic demand growth dwarfs the impact of demand-side subsidies and battery cost declines, highlighting the importance of nonmonetary factors (e.g., charging infrastructure, product quality, and/or cultural acceptance) on electric vehicle demand.

Optimal Timing of Electric Vehicle Subsidies

Optimal Timing of Electric Vehicle Subsidies

Is Pollution Reduced or Redistributed? The Impact of Electric Vehicle Subsidies in China

Is Pollution Reduced or Redistributed? The Impact of Electric Vehicle Subsidies in China

Empirical grid impact of in-home electric vehicle charging differs from predictions

Accurate assessment of the impact of electric vehicle (EV) charging on the electric grid is critical for energy policymakers to design efficient EV subsidy programs as well as to provide reliable electricity infrastructure. Despite the fact that 80 % of EV charging is conducted with residential in-home chargers, very few empirical studies have examined the load and environmental impact of residential EV charging based on actual electricity consumption data. Our paper fills this critical gap in the literature, applying a difference-in-differences approach to high frequency smart meter data of about 1600 EV homes from 2014 to 2019 in Arizona, United States. First, we find that the electricity demand during the system peak hours from 6 to 8 pm in summer can increase by 7–14 % at an average household with in-home EV charging. Second, EV households respond to electricity pricing signals by increasing their charging in lower-priced off-peak hours within the EV-specific time-of-use (TOU) pricing. Third, we find evidence of rebound effects in driving that lead to a reduction in home-electricity consumption in certain hours of the day. Lastly, we show that our empirical estimation of the grid impact due to in-home EV charging is different from that predicted by existing simulation models due to factors such as consumer behaviors. Such deviations between predicted and actual behaviors imply potential adjustment of relevant policy interventions.

Intention of consumers to adopt electric vehicle in the post-subsidy era: evidence from China

The electric vehicle (EV) industry has been promoted by a series of incentive policy measures in China to reduce both the consumption of petroleum fuels and the emission of greenhouse gases. Nonetheless, the EV market remains small-scale. In this context, the Chinese government initiated a gradual phase-out of EV subsidies in 2018, targeting total elimination by 2022, which is undoubtedly a massive challenge to the EV market. This study proposes an extended theory of planned behavior model, in which psychological factors (attitude, subjective norm, perceived behavioral control and perceived risk) and two categories of incentive policy measures (financial incentive policy and non-financial incentive policy) are integrated to explain intentions to adopt EV use. Moreover, two types of personality (consumer innovativeness and environmental self-identity) are added as moderating variables to assess policy effects based on different personality conditions. Primary data collected from 727 participants in China were used to test the model empirically. The results show that the psychological factors and policy measures in the model significantly influence consumers’ EVs adoption intention, and the personalities of consumers significantly moderate the impacts of policy measures on this adoption intention. The findings help increase understanding of consumers' adoption intentions in respect of EVs and contribute to promoting EV development, especially in the post-subsidy era.

Optimal production and pricing strategies in auto supply chain when dual credit policy is substituted for subsidy policy

The Chinese government has proposed a dual credit policy (DCP) as a substitute for electric vehicle (EV) subsidies, which fluctuates the auto market. To investigate the policy substitution influences for the production and pricing strategies, we use Stackelberg game paradigms to model a two-stage auto supply chain. The manufacturer regulated by the DCP produces both EV and internal combustion engine vehicles (ICEV). The retailer sells them to heterogeneous consumers. By backward induction, the optimal production and pricing strategies are derived for the subsidy policy only (scenario B) and with a joint subsidy policy and DCP (scenario DS). Our findings show, 1) different with only one case in scenario B, the manufacturer and the retailer have three corresponding optimal production and pricing strategies in scenario DS, according to the manufacturer’s Corporate Average Fuel Consumption credit (CAFC credit); 2) the demand for the ICEV may also decline like EV as the subsidies are phased out in scenario DS when the manufacturer’s CAFC credit is in balance case; 3) the changes of DCP rules may have different effects on the optimal production and pricing strategies in different CAFC cases.