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Alternative Incentive Policies against Purchase Subsidy Decrease for Battery Electric Vehicle (BEV) Adoption

Author

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  • Tianwei Lu

    (Key Laboratory of Transport Industry of Big Data Application Technologies for Comprehensive Transport, Beijing Jiaotong University, Beijing 100044, China)

  • Enjian Yao

    (Key Laboratory of Transport Industry of Big Data Application Technologies for Comprehensive Transport, Beijing Jiaotong University, Beijing 100044, China)

  • Fanglei Jin

    (Key Laboratory of Transport Industry of Big Data Application Technologies for Comprehensive Transport, Beijing Jiaotong University, Beijing 100044, China)

  • Long Pan

    (Key Laboratory of Transport Industry of Big Data Application Technologies for Comprehensive Transport, Beijing Jiaotong University, Beijing 100044, China)

Abstract

The purchase subsidy policy gives powerful support in battery electric vehicles’ (BEVs) market penetration. However, the purchase subsidy is also a huge financial burden for the government, so it can only be considered as a transitional measure and will be canceled gradually. This paper aims to investigate the impact of purchase subsidy phase-out on BEV adoptions and explore alternative incentive policies to continue stimulating BEV adoptions. A stated preference (SP) survey is conducted in Beijing, and a binary logit (BL) model is established to describe how various factors affect BEV adoption preferences. In addition to the factors related to vehicle techniques, the policies of license plate restrictions and driving restrictions are focused due to Beijing’s unique external policy environment. The vehicle use subsidy and bus line driving permit are tested as alternative incentive policies against the purchase subsidy decrease. The results show that incentive policies can significantly influence BEV adoption intentions. If the purchase subsidy policy is canceled in Beijing, the BEV choice probability will be reduced from 45.94% to 16.62%. In this case, the vehicle use subsidy needs to be set at the level of 4966 CNY/year (714.3 USD/year) to maintain the original BEV choice probability.

Suggested Citation

  • Tianwei Lu & Enjian Yao & Fanglei Jin & Long Pan, 2020. "Alternative Incentive Policies against Purchase Subsidy Decrease for Battery Electric Vehicle (BEV) Adoption," Energies, MDPI, vol. 13(7), pages 1-19, April.
  • Handle: RePEc:gam:jeners:v:13:y:2020:i:7:p:1645-:d:340472
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    References listed on IDEAS

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    Cited by:

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    2. Hu, Xu & Yang, Zhaojun & Sun, Jun & Zhang, Yali, 2021. "Exempting battery electric vehicles from traffic restrictions: Impacts on market and environment under Pigovian taxation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 154(C), pages 53-91.
    3. Lu, Tianwei & Yao, Enjian & Jin, Fanglei & Yang, Yang, 2022. "Analysis of incentive policies for electric vehicle adoptions after the abolishment of purchase subsidy policy," Energy, Elsevier, vol. 239(PB).
    4. Soto, Jose J. & Macea, Luis F. & Cantillo, Victor, 2023. "Analysing a license plate-based vehicle restriction policy with optional exemption charge: The case in Cali, Colombia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    5. Jia, Wenjian & Jiang, Zhiqiu & Wang, Qian & Xu, Bin & Xiao, Mei, 2023. "Preferences for zero-emission vehicle attributes: Comparing early adopters with mainstream consumers in California," Transport Policy, Elsevier, vol. 135(C), pages 21-32.
    6. Zhang, Xiaoyun & Dong, Feng, 2023. "What affects residents’ behavioral intentions to ban gasoline vehicles? Evidence from an emerging economy," Energy, Elsevier, vol. 263(PB).
    7. Unnati Tuladhar & Nuttaya Yuangyai & Theerakamol Pengsakul & Saroj Gyawali, 2023. "The Determination of Willingness to Pay for Electrical Vehicles: A Literature Review," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 425-431, September.

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