Subsidizing low- and middle-income adoption of electric vehicles: Quasi-experimental evidence from California

Erich Muehlegger and David Rapson

Journal of Public Economics, 2022, vol. 216, issue C

Abstract: Little is known about electric vehicle (EV) demand by low- and middle-income households. In this paper, we exploit a policy that provides exogenous variation in large EV subsidies targeted at the mass market in California. Using transaction-level data, we estimate three important policy parameters: the rate of subsidy pass-through, the impact of the subsidy on EV adoption, and the elasticity of demand for EVs among low- and middle-income households. Demand for EVs in our sample is price-elastic (−2.1) and buyers capture roughly 73 to 85 percent of the subsidy.

Keywords: Electric vehicles; Low-income subsidies; Pass-through (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (16)

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Working Paper: Subsidizing Low- and Middle-Income Adoption of Electric Vehicles: Quasi-Experimental Evidence from California (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:216:y:2022:i:c:s0047272722001542

DOI: 10.1016/j.jpubeco.2022.104752

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