2023
DOI: 10.5547/01956574.44.2.tshe
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How Cost-effective are Electric Vehicle Subsidies in Reducing Tailpipe-CO2 Emissions? An Analysis of Major Electric Vehicle Markets

Abstract: We estimate the cost-effectiveness of plug-in electric vehicle (PEV) subsidies in reducing tailpipe-CO 2 emissions in China, the U.S., and nine European countries. We find that the per-tonne cost of tailpipe-CO 2 avoided increases linearly with the government-subsidized percentage of the PEV price. Costs are relatively higher in the Netherlands and Denmark, which subsidized high-priced PEVs including plug-in hybrids, and lower in the U.S., where PEVs replaced higher-emissions cars. Chinese PEV subsidies have a… Show more

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Cited by 15 publications
(3 citation statements)
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“…Some scholars have also proved that the growth of NEVs has a significant contribution to the achievement of carbon reduction targets in countries such as Spain, Italy, and India (Bastida‐Molina et al (2020); Bellocchi et al, 2018; Hossain et al, 2023). Furthermore, there are many literatures based on the cases of several countries, comparing the carbon emission potential of NEVs, and highlighting heterogeneity between them (Franzò & Nasca, 2021; Plötz et al, 2021; Rietmann et al, 2020; Sheldon et al, 2023; Xu et al, 2021).…”
Section: Literature Review and Theoretical Analysismentioning
confidence: 99%
“…Some scholars have also proved that the growth of NEVs has a significant contribution to the achievement of carbon reduction targets in countries such as Spain, Italy, and India (Bastida‐Molina et al (2020); Bellocchi et al, 2018; Hossain et al, 2023). Furthermore, there are many literatures based on the cases of several countries, comparing the carbon emission potential of NEVs, and highlighting heterogeneity between them (Franzò & Nasca, 2021; Plötz et al, 2021; Rietmann et al, 2020; Sheldon et al, 2023; Xu et al, 2021).…”
Section: Literature Review and Theoretical Analysismentioning
confidence: 99%
“…Electric vehicles (EVs) have become a research hotspot because of their energy-saving and green characteristics. In 2021, the U.S. House of Representatives enacted the Electric Vehicle Freedom Act to promote the development of the EV industry in the next five years, and the Netherlands, the United Kingdom, and France have also introduced relevant policies to promote the construction of EVs [3]. In the European electric vehicle market, in order to stimulate EV consumption in Germany, the subsidy price is up to EUR 9000 per unit [4].…”
Section: Introductionmentioning
confidence: 99%
“…The US transportation sector is almost entirely dependent on a single energy resource-petroleum-for fuel, and electrification enables transportation to be powered by low-carbon energy sources such as solar and wind, opening a path to zero tailpipe emissions and far lower life-cycle GHG emissions [2,3]. Further, EVs come with both public and private performance benefits, including reduced on-road emissions of pollutants harmful to health and decreased vehicle operating and maintenance costs, helping to offset the higher average purchase price [4][5][6][7].…”
Section: Introductionmentioning
confidence: 99%