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Subsidy implementation patterns and electric vehicle adoption.

Xiaoming Hu1, Xiang Zhang1, Mengfei Jiang2

  • 1School of Management, Beijing Institute of Technology, Beijing, 100081, China; Sustainable Development Research Institute for Economy and Society of Beijing, Beijing, 100081, China.

Journal of Environmental Management
|January 3, 2025
PubMed
Summary
This summary is machine-generated.

Municipal subsidies are most effective for promoting electric vehicle (EV) adoption compared to provincial or joint financing. Retroactive subsidies do not hinder EV uptake, offering insights for effective EV policy.

Keywords:
Electric vehicleImplementation patternsLocal subsidiesPolicy effectiveness

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Area of Science:

  • Environmental Science
  • Public Policy
  • Transportation Economics

Background:

  • Local governments offer subsidies to encourage electric vehicle (EV) adoption.
  • Variations exist in subsidy implementation, including funding levels, joint financing, and retroactive application.
  • The impact of these implementation patterns on EV adoption is not well understood.

Purpose of the Study:

  • To analyze how different local subsidy implementation patterns affect electric vehicle adoption.
  • To provide empirical evidence for optimizing EV subsidy policies.

Main Methods:

  • Development of an analytical model to study subsidy impacts.
  • Empirical verification using monthly panel data from 132 Chinese cities.
  • Comparative analysis of municipal, provincial, and jointly financed subsidies.

Main Results:

  • Municipal subsidies show a greater positive impact on EV adoption than provincial or jointly financed subsidies.
  • A 10% increase in municipal subsidies (relative to national) correlates with approximately 1000 more EVs than provincial subsidies and 965 more EVs than joint subsidies.
  • Retroactive subsidy implementation did not significantly impede local EV adoption.

Conclusions:

  • Municipal-level subsidies are the most effective policy lever for promoting EV adoption.
  • Policymakers can leverage these findings to design more effective and synergistic EV incentive programs.
  • Understanding subsidy structure is crucial for maximizing the impact of government interventions in promoting sustainable transportation.