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How to support EV adoption: Tradeoffs between charging infrastructure investments and vehicle subsidies in California

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  • Ledna, Catherine
  • Muratori, Matteo
  • Brooker, Aaron
  • Wood, Eric
  • Greene, David

Abstract

Supporting the adoption of zero-emission vehicle (ZEVs), including plug-in electric vehicles (EVs), has become a priority for governments due to their ability to reduce petroleum demand, improve air quality, and reduce carbon dioxide (CO2) emissions. Optimal strategies to accelerate EV adoption must weigh the relative value of alternative policy mechanisms to consumers, including public charging infrastructure and vehicle purchase subsidies. We use a historically validated light-duty vehicle consumer choice tool, the ADOPT model, to simulate personal light-duty vehicle adoption and related emissions in California. ADOPT is updated to incorporate a quantification of the tangible value of public charging infrastructure, allowing us to simulate the impact of investments in public charging infrastructure and vehicle purchase subsidies under different scenarios. We show that both policies result in increased EV adoption, with the most effective policy varying depending on vehicle technology assumptions. Under conservative technology improvement assumptions, infrastructure investments are most effective in promoting EV sales and reducing CO2 emissions, while under optimistic technology improvement assumptions a combination of infrastructure and subsidies best supports EV sales and CO2 emission reductions.

Suggested Citation

  • Ledna, Catherine & Muratori, Matteo & Brooker, Aaron & Wood, Eric & Greene, David, 2022. "How to support EV adoption: Tradeoffs between charging infrastructure investments and vehicle subsidies in California," Energy Policy, Elsevier, vol. 165(C).
    • Handle: RePEc:eee:enepol:v:165:y:2022:i:c:s0301421522001562
    DOI: 10.1016/j.enpol.2022.112931
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    Cited by:

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    3. Siobhan Powell & Gustavo Vianna Cezar & Liang Min & Inês M. L. Azevedo & Ram Rajagopal, 2022. "Charging infrastructure access and operation to reduce the grid impacts of deep electric vehicle adoption," Nature Energy, Nature, vol. 7(10), pages 932-945, October.
    4. Zunian Luo, 2022. "Powering Up a Slow Charging Market: How Do Government Subsidies Affect Charging Station Supply?," Papers 2210.14908, arXiv.org, revised Jan 2023.
    5. Konstantina Anastasiadou & Nikolaos Gavanas, 2022. "State-of-the-Art Review of the Key Factors Affecting Electric Vehicle Adoption by Consumers," Energies, MDPI, vol. 15(24), pages 1-23, December.
    6. Liu, Bingchun & Song, Chengyuan & Liang, Xiaoqin & Lai, Mingzhao & Yu, Zhecheng & Ji, Jie, 2023. "Regional differences in China's electric vehicle sales forecasting: Under supply-demand policy scenarios," Energy Policy, Elsevier, vol. 177(C).
    7. Danlei Feng & Mingzhao Hu & Lingdi Zhao & Sha Liu, 2022. "The Impact of Firm Heterogeneity and External Factor Change on Innovation: Evidence from the Vehicle Industry Sector," Sustainability, MDPI, vol. 14(11), pages 1-15, May.
    8. Chen, Rongkai & Fan, Ruguo & Wang, Dongxue & Yao, Qianyi, 2023. "Effects of multiple incentives on electric vehicle charging infrastructure deployment in China: An evolutionary analysis in complex network," Energy, Elsevier, vol. 264(C).

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