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Electric vehicle adoption: Alternative policy incentives and their substitutability with direct subsidies

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  • Singh, Shrikant
  • Parashari, Gopal Sharan
  • Balaga, Mohana Rao

Abstract

Direct purchase subsidies for Electric Vehicles (EVs) are critical in shaping consumer preferences. However, these subsidies impose a significant fiscal burden on governments, while having limited impact on adoption rates. A key concern among early adopters is the need for adequate infrastructure services, especially charging infrastructure given the range anxiety. This paper analyzes the findings of a comprehensive primary survey that we conducted for this study and examines the impact of alternative incentive policies on consumer preferences for electric vehicles, and evaluates the effects of substituting these incentives for direct purchase subsidies. Our findings suggest that policymakers should prioritize incorporating recurring value-added benefits in addition to direct subsidies. Such incentives would help reduce long-term operational costs and offer a sustainable transition to low-carbon mobility.

Suggested Citation

  • Singh, Shrikant & Parashari, Gopal Sharan & Balaga, Mohana Rao, 2026. "Electric vehicle adoption: Alternative policy incentives and their substitutability with direct subsidies," Transport Policy, Elsevier, vol. 182(C).
  • Handle: RePEc:eee:trapol:v:182:y:2026:i:c:s0967070x26001290
    DOI: 10.1016/j.tranpol.2026.104119
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    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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