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Is California’s Electric Vehicle Rebate Regressive? A Distributional Analysis

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  • Ku, Arthur L.
  • Graham, John D.

Abstract

Economic incentives are in widespread use to stimulate the development of the electric vehicle industry. However, the distributional effects of such incentives have been subject to little empirical inquiry. This study examines how California’s electric vehicle rebate program impacts different income groups financially. Two effects are considered: the income distribution of rebate beneficiaries and the income distribution of the rebate payers. The results reveal that the overall net financial impacts of the electric vehicle rebate program are regressive: the benefit distribution is highly regressive while the cost distribution is slightly progressive. Recent efforts to improve the fairness of the rebate program do not alter our findings. Policy implications are discussed.

Suggested Citation

  • Ku, Arthur L. & Graham, John D., 2022. "Is California’s Electric Vehicle Rebate Regressive? A Distributional Analysis," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 13(1), pages 1-19, March.
  • Handle: RePEc:cup:jbcoan:v:13:y:2022:i:1:p:1-19_1
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    Cited by:

    1. Zhao, Jiaxin & Mattauch, Linus, 2022. "When standards have better distributional consequences than carbon taxes," Journal of Environmental Economics and Management, Elsevier, vol. 116(C).

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