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Evaluation of European electric vehicle support schemes

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  • Kley, Fabian
  • Wietschel, Martin
  • Dallinger, David

Abstract

Electric vehicles can reduce carbon dioxide emissions, increase energy efficiency, and help to reduce the dependency on oil imports. However, today's technical and economic challenges are preventing mass-market adoption. In order to create an early market and support economies of scale in production, some European countries have already established support schemes. This research study aims to provide an overview of the existing support schemes in Europe and to assess them using four criteria: effectiveness, efficiency, practicability, and political acceptance. The study concludes with an impact analysis of today's economic support schemes which considers the total costs of ownership. While one-time support schemes help to reduce the large initial investments for EVs, recurring instruments are often more effective and efficient but also smaller in volume. The comparison of the different regional incentive schemes reveals that EVs today are only economically attractive in Denmark and Norway, but at relatively high prices. Thus, regulators need to increase the volume and efficiency of the support schemes, establish high scoring instruments, and align these on a European scale. In addition, non-monetary support, e.g. free-parking, can help to overcome technical or smaller economic hurdles.

Suggested Citation

  • Kley, Fabian & Wietschel, Martin & Dallinger, David, 2010. "Evaluation of European electric vehicle support schemes," Working Papers "Sustainability and Innovation" S7/2010, Fraunhofer Institute for Systems and Innovation Research (ISI).
    • Handle: RePEc:zbw:fisisi:s72010
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    References listed on IDEAS

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    1. Dominika Kalinowska & Kerim Keser & Uwe Kunert, 2009. "CO2-Besteuerung von Pkws in Europa auf dem Vormarsch," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 76(27/28), pages 438-450.
    2. de Haan, Peter & Mueller, Michel G. & Scholz, Roland W., 2009. "How much do incentives affect car purchase? Agent-based microsimulation of consumer choice of new cars--Part II: Forecasting effects of feebates based on energy-efficiency," Energy Policy, Elsevier, vol. 37(3), pages 1083-1094, March.
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    2. Aditya Ramji & Daniel Sperling & Lewis Fulton, 2024. "Sustainable Market Incentives -- Lessons from European Feebates for a ZEV Future," Papers 2401.15069, arXiv.org.
    3. Nilsson, Måns & Nykvist, Björn, 2016. "Governing the electric vehicle transition – Near term interventions to support a green energy economy," Applied Energy, Elsevier, vol. 179(C), pages 1360-1371.
    4. Jèrome Massiani, 2011. "Modelling and evaluation of the diffusion of electric vehicles: existing models, results, and proposal for a new model," Working Papers 11_6, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2011.
    5. Massiani, Jérôme, 2015. "Cost-Benefit Analysis of policies for the development of electric vehicles in Germany: Methods and results," Transport Policy, Elsevier, vol. 38(C), pages 19-26.
    6. Gabriel Ayobami Ogunkunbi & Havraz Khedhir Younis Al-Zibaree & Ferenc Meszaros, 2022. "Modeling and Evaluation of Market Incentives for Battery Electric Vehicles," Sustainability, MDPI, vol. 14(7), pages 1-11, April.
    7. Jèrome Massiani, 2011. "Modelling and evaluation of the diffusion of electric vehicles: existing models, results, and proposal for a new model," Working Papers 1106, SIET Società Italiana di Economia dei Trasporti e della Logistica, revised 2011.
    8. Zolfagharinia, Hossein & Zangiabadi, Maryam & Hafezi, Maryam, 2023. "How much is enough? Government subsidies in supporting green product development," European Journal of Operational Research, Elsevier, vol. 309(3), pages 1316-1333.
    9. Gass, V. & Schmidt, J. & Schmid, E., 2014. "Analysis of alternative policy instruments to promote electric vehicles in Austria," Renewable Energy, Elsevier, vol. 61(C), pages 96-101.
    10. Gnann, Till & Plötz, Patrick, 2011. "Status Quo und Perspektiven der Elektromobilität in Deutschland," Working Papers "Sustainability and Innovation" S14/2011, Fraunhofer Institute for Systems and Innovation Research (ISI).
    11. San Román, Tomás Gómez & Momber, Ilan & Abbad, Michel Rivier & Sánchez Miralles, Álvaro, 2011. "Regulatory framework and business models for charging plug-in electric vehicles: Infrastructure, agents, and commercial relationships," Energy Policy, Elsevier, vol. 39(10), pages 6360-6375, October.

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