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The Effectiveness of China’s Plug-In Electric Vehicle Subsidy

Author

Listed:
  • Tamara Sheldon
  • Rubal Dua

    (King Abdullah Petroleum Studies and Research Center)

Abstract

Subsidies for promoting plug-in electric vehicle (PEV) adoption are a key component of China’s overall plan for reducing local air pollution and greenhouse gas (GHG) emissions from its light-duty vehicle sector. This paper explores the impact and cost-effectiveness of the Chinese PEV subsidy program. A vehicle choice model is estimated using a large random sample of individual-level data for new vehicle purchases in China for model year 2017.

Suggested Citation

  • Tamara Sheldon & Rubal Dua, 2019. "The Effectiveness of China’s Plug-In Electric Vehicle Subsidy," Discussion Papers ks--2019-dp77, King Abdullah Petroleum Studies and Research Center.
    • Handle: RePEc:prc:dpaper:ks--2019-dp77
    DOI: 10.30573/KS--2019-DP77
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    2. Lijing Zhu & Jingzhou Wang & Arash Farnoosh & Xunzhang Pan, 2021. "A Game-Theory Analysis of Electric Vehicle Adoption in Beijing under License Plate Control Policy," Working Papers hal-03500766, HAL.
    3. Shang, Wen-Long & Zhang, Junjie & Wang, Kun & Yang, Hangjun & Ochieng, Washington, 2024. "Can financial subsidy increase electric vehicle (EV) penetration---evidence from a quasi-natural experiment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 190(PA).
    4. Fei, Chengcheng J. & Kung, Chih-Chun, 2024. "The effects of tiered-electrical-subsidy policy on biopower development," Energy Policy, Elsevier, vol. 193(C).
    5. Sheldon, Tamara L. & Dua, Rubal, 2024. "The dynamic role of subsidies in promoting global electric vehicle sales," Transportation Research Part A: Policy and Practice, Elsevier, vol. 187(C).
    6. Wesseh, Presley K. & Benjamin, Nelson I. & Lin, Boqiang, 2022. "The coordination of pumped hydro storage, electric vehicles, and climate policy in imperfect electricity markets: Insights from China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 160(C).
    7. Ji, Dandan & Gan, Hongcheng, 2022. "Effects of providing total cost of ownership information on below-40 young consumers’ intent to purchase an electric vehicle: A case study in China," Energy Policy, Elsevier, vol. 165(C).
    8. Zhu, Lijing & Wang, Jingzhou & Farnoosh, Arash & Pan, Xunzhang, 2022. "A game-theory analysis of electric vehicle adoption in Beijing under license plate control policy," Energy, Elsevier, vol. 244(PA).
    9. Cui, Qinyu & Zhang, Yan & Ma, Haoran & Zhang, Kaihan & Peng, Jinhan & Chen, Zemu & Lin, Peiqun & Lin, Zhenhong, 2025. "How about electric vehicle? Sensing owners’ experiences and attitudes through online short video," Transport Policy, Elsevier, vol. 167(C), pages 1-15.
    10. Sheldon, Tamara L. & Dua, Rubal, 2021. "How responsive is Saudi new vehicle fleet fuel economy to fuel-and vehicle-price policy levers?," Energy Economics, Elsevier, vol. 97(C).
    11. Zhang, Junjie & Jia, Rongwen & Yang, Hangjun & Dong, Kangyin, 2022. "Does electric vehicle promotion in the public sector contribute to urban transport carbon emissions reduction?," Transport Policy, Elsevier, vol. 125(C), pages 151-163.
    12. Debnath, Ramit & Bardhan, Ronita & Reiner, David M. & Miller, J.R., 2021. "Political, economic, social, technological, legal and environmental dimensions of electric vehicle adoption in the United States: A social-media interaction analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 152(C).
    13. Wang, Kai-Hua & Su, Chi-Wei & Xiao, Yidong & Liu, Lu, 2022. "Is the oil price a barometer of China's automobile market? From a wavelet-based quantile-on-quantile regression perspective," Energy, Elsevier, vol. 240(C).
    14. Shi, Lei & Wu, Rongxin & Lin, Boqiang, 2023. "Where will go for electric vehicles in China after the government subsidy incentives are abolished? A controversial consumer perspective," Energy, Elsevier, vol. 262(PA).
    15. Nie, Qingyun & Zhang, Lihui & Tong, Zihao & Hubacek, Klaus, 2022. "Strategies for applying carbon trading to the new energy vehicle market in China: An improved evolutionary game analysis for the bus industry," Energy, Elsevier, vol. 259(C).
    16. Martin Kalthaus & Jiatang Sun, 2021. "Determinants of Electric Vehicle Diffusion in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(3), pages 473-510, November.
    17. Gu, Xiaoyu & Zhou, Li & Huang, Hongfu & Shi, Xiutian & Ieromonachou, Petros, 2021. "Electric vehicle battery secondary use under government subsidy: A closed-loop supply chain perspective," International Journal of Production Economics, Elsevier, vol. 234(C).
    18. Wen, W. & Yang, S. & Zhou, P. & Gao, S.Z., 2021. "Impacts of COVID-19 on the electric vehicle industry: Evidence from China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).

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    Keywords

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    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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