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The impact of UK financial incentives on the adoption of electric fleets: The moderation effect of GDP change

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  • Alali, Layla
  • Niesten, Eva
  • Gagliardi, Dimitri

Abstract

Governments provide policy incentives to increase adoption rates of electric vehicles and achieve sustainability goals. This paper investigates the impact of UK financial purchase incentives on new registrations of electric fleets whilst moderating for change in gross domestic product (GDP). We use a unique dataset of new registrations of electric fleets in the UK for a 20-year period (1999–2019). Our results show that financial purchase incentives positively impact new registrations of electric fleets, and this effect is positively moderated by GDP change. Marginal analysis reveals three categories of adopters that purchase electric fleets at different levels of policy and GDP change: insensitive adopters, standard adopters, and sensitive adopters. Overall, financial incentives may be more effective in fostering the adoption of electric fleets when set to levels that are conditioned on the level of GDP change. In particular, financial purchase incentives are most effective when GDP change and incentives are above their average level.

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  • Alali, Layla & Niesten, Eva & Gagliardi, Dimitri, 2022. "The impact of UK financial incentives on the adoption of electric fleets: The moderation effect of GDP change," Transportation Research Part A: Policy and Practice, Elsevier, vol. 161(C), pages 200-220.
    • Handle: RePEc:eee:transa:v:161:y:2022:i:c:p:200-220
    DOI: 10.1016/j.tra.2022.04.011
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