Impact of New Energy Vehicle Charging Point Subsidy Policy on Subway Demand: Evidence from Beijing’s Real Estate Market

Abstract

New energy vehicles (NEVs) offer a sustainable private transportation alternative. Charging points are the source of power for NEVs; thus, their construction can significantly lower the costs associated with their use, thereby encouraging their adoption. This could potentially impact the subway demand, which is reflected by the relationship between housing prices and subway proximity in this paper, leading to a decrease in the premium for properties near subway stations. Utilizing a comprehensive data set of 599,916 housing transactions in Beijing and a difference-in-differences approach based on the hedonic price model, we found that China’s NEV charging point subsidy policy significantly decreases the subway premium of housing prices and mitigates housing price disparities. Furthermore, we explored the spatial heterogeneity of this impact, finding that the policy has less influence on residents living near the city center. Our findings indicate that the policy has resulted in a considerable decrease in the subway premium, ranging from ¥19,217 to ¥55,936 ($2745 to $7991) per transaction, which is equivalent to the annual income for an average individual at the time of the policy. The results address the far-reaching implications and significant role of NEV development in urban transportation.