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Pass-through of Electric Vehicle Subsidies: A Global Analysis

Author

Listed:
  • Panle Jia Barwick
  • Hyuk-soo Kwon
  • Binglin Wang
  • Nahim Bin Zahur

Abstract

We investigate the pass-through of electric vehicle (EV) subsidies in 13 countries that account for 95 percent of global EV sales from 2013 to 2020. Our results indicate high pass-through rates of 70-80 percent on average. Pass-through is highest for global firms that sell the same EV models across multiple countries, consistent with uniform pricing by these firms, as well as avoidance of third-party arbitrage. We find suggestive evidence that pass-through is higher for tax incentives than for direct consumer subsidies.

Suggested Citation

  • Panle Jia Barwick & Hyuk-soo Kwon & Binglin Wang & Nahim Bin Zahur, 2023. "Pass-through of Electric Vehicle Subsidies: A Global Analysis," AEA Papers and Proceedings, American Economic Association, vol. 113, pages 323-328, May.
    • Handle: RePEc:aea:apandp:v:113:y:2023:p:323-28
    DOI: 10.1257/pandp.20231064
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    More about this item

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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