Taxation Preferences and the Uptake of Hybrid and Electric Vehicles in Poland’s Ten Largest Cities: A Case Study

Abstract

The purpose of this article is to explore whether and based on what criteria local governments employ reduced tax rates on means of transportation to encourage hybrid and electric vehicles. The study also aims to determine if there has been a more rapid increase in the number of means of transportation powered entirely or partially by electricity in local government units that have implemented more substantial incentives. The study encompasses the ten largest cities in Poland and the years 2018–2020. To achieve the above research objectives, an analysis of the texts of the resolutions of the city councils was carried out in terms of the tax rates in effect during the selected period. On the basis of the relevant amounts provided in the resolutions, the amount of concessions resulting from the application of lower tax rates was calculated, and the criteria for the use of these concessions related to the level of emissivity were presented. To assess the potential correlation between the scale of tax preferences and the dynamics of growth in the number of hybrid and electric vehicles, a statistical tool in the form of Spearman’s rank correlation coefficient was used for a thorough data analysis. The results suggest that municipalities use their authority to introduce differentiated tax rates on means of transportation. However, those utilizing hybrid and electric vehicles are more likely to employ these powers on an equal basis, with owners of vehicles adhering to lower emission standards covered by EURO standards. In addition, there was no positive correlation between the amount of tax credits and the rate of growth in the number of reduced-emission vehicles. This work can foster a green mindset and societal nature-based new thinking.

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“…In Poland, local governments employ reduced tax rates on means of transportation to encourage hybrid and electric vehicles [5]. The European Union has set an ambitious target to reduce total emissions to 55% for cars and 50% for vans by 2030 because road transport contributes 25% of total annual emissions within the EU [6].…”