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The In fluence of Government Incentives on Electric Vehicle Adoption: Cross-national Comparison


  • Sarah Fluchs

    (RWTH Aachen University)

  • Dr. Garnet Kasperk


This paper examines the infl uence of political incentives which are set by the government and aim at promoting the adoption of electric vehicles (EVs). More specifically, battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) are considered. A classification and categorization of different incentives is provided and specified for five countries, namely Norway, Netherlands, Germany, United States and China. Additionally, an empirical study was performed for China and the Netherlands employing the method of time series (TS) analysis. Results reveal that government incentives affect EV market penetration but exact effects differ for both country and type of EV. In China, especially direct rebates increase EV adoption under certain circumstances. In the Netherlands, PHEVs' market share increases more compared to BEVs' market share if both vehicle types receive the comparable incentives.

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  • Sarah Fluchs & Dr. Garnet Kasperk, 2017. "The In fluence of Government Incentives on Electric Vehicle Adoption: Cross-national Comparison," MAGKS Papers on Economics 201757, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  • Handle: RePEc:mar:magkse:201757

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    References listed on IDEAS

    1. Egbue, Ona & Long, Suzanna, 2012. "Barriers to widespread adoption of electric vehicles: An analysis of consumer attitudes and perceptions," Energy Policy, Elsevier, vol. 48(C), pages 717-729.
    2. Meghan R. Busse & Christopher R. Knittel & Florian Zettelmeyer, 2013. "Are Consumers Myopic? Evidence from New and Used Car Purchases," American Economic Review, American Economic Association, vol. 103(1), pages 220-256, February.
    3. Chandra, Ambarish & Gulati, Sumeet & Kandlikar, Milind, 2010. "Green drivers or free riders? An analysis of tax rebates for hybrid vehicles," Journal of Environmental Economics and Management, Elsevier, vol. 60(2), pages 78-93, September.
    4. Diamond, David, 2009. "The impact of government incentives for hybrid-electric vehicles: Evidence from US states," Energy Policy, Elsevier, vol. 37(3), pages 972-983, March.
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    public policy; electric vehicles; political incentives; technology diffusion;

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