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Local Incentives and Electric Vehicle Adoption

Author

Listed:
  • Askill H. Halse
  • Karen E. Hauge
  • Elisabeth T. Isaksen
  • Bjørn G. Johansen
  • Oddbjørn Raaum

Abstract

We study how the adoption of battery electric vehicles—a key technology for decarbonizing transportation—responds to two local incentives: road toll exemption and bus lane access. Combining rich Norwegian microdata with a quasi-experimental research design where we exploit household-level variations in incentives on work commutes, we find sizable and positive effects on electric vehicle ownership. The increase in electric vehicles from having road tolls and bus lanes on work commutes is, on average, offset by a similar decline in the ownership of conventional vehicles. Still, road toll exposure increases total car ownership among the richest households. Road tolls also reduce “brown” driving per vehicle, but lower CO2 emissions are largely due to the reduction in the number of conventional vehicles.

Suggested Citation

  • Askill H. Halse & Karen E. Hauge & Elisabeth T. Isaksen & Bjørn G. Johansen & Oddbjørn Raaum, 2025. "Local Incentives and Electric Vehicle Adoption," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 12(1), pages 145-180.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/730590
    DOI: 10.1086/730590
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    Cited by:

    1. Isaksen, Elisabeth T. & Johansen, Bjørn G., 2025. "Congestion pricing with electric vehicle exemptions: Car-ownership effects and other behavioral adjustments," Journal of Environmental Economics and Management, Elsevier, vol. 131(C).
    2. Nhoyidi Nsan & Chinemerem Obi & Emmanuel Etuk, 2025. "Bridging Policy, Infrastructure, and Innovation: A Causal and Predictive Analysis of Electric Vehicle Integration Across Africa, China, and the EU," Sustainability, MDPI, vol. 17(12), pages 1-34, June.
    3. Brita Bye & Kevin R. Kaushal & Orvika Rosnes & Karen Turner & Hidemichi Yonezawa, 2023. "The Road to a Low Emission Society: Costs of Interacting Climate Regulations," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(3), pages 565-603, November.
    4. Koch, Nicolas & Ritter, Nolan & Rohlf, Alexander & Scarazzato, Francesco, 2022. "When is the electric vehicle market self-sustaining? Evidence from Norway," Energy Economics, Elsevier, vol. 110(C).

    More about this item

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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