Analysis of incentive policies for electric vehicle adoptions after the abolishment of purchase subsidy policy

Tianwei Lu, Enjian Yao, Fanglei Jin and Yang Yang

Energy, 2022, vol. 239, issue PB

Abstract: The purchase subsidy policy for electric vehicles (EVs) has considerably stimulated the purchase preferences of price-sensitive consumers and helped to increase the penetration rate of EVs in China. However, the purchase subsidy also brings increased financial burdens to governments; therefore, it is viewed as a short-term policy and will phase out. Considering the price sensitivity of different consumer categories, this paper aims to investigate the impact of several substitutional incentive policies to continue stimulating the adoption preference of EVs after the purchase subsidy phase-out. A latent class binary logit (LCBL) model is established to explore consumers’ EV adoption preferences in different price-sensitive categories. Four substitutional incentive policies, including mileage subsidy, congestion fee discount, parking fee discount, and bus lane driving permission, are proposed to cope with the abolishment of purchase subsidy. The results show that the incentive effect of the purchase subsidy policy on price-sensitive consumers is 1.6 times that of price-insensitive consumers. To avoid the reduction in EV adoption rate caused by the abolishment of purchase subsidy, mileage subsidy, parking fee discount, or congestion fee discount should be set at 0.93 CNY/km, 4.43 CNY/hour, or 16.09 CNY/time, respectively.

Keywords: Electric vehicle; Purchase preference; Price sensitive; Purchase subsidy; Substitutional incentive; Latent class (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544221023847
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:239:y:2022:i:pb:s0360544221023847

DOI: 10.1016/j.energy.2021.122136

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().