Alternative Incentive Policies against Purchase Subsidy Decrease for Battery Electric Vehicle (BEV) Adoption

Tianwei Lu, Enjian Yao, Fanglei Jin and Long Pan
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Tianwei Lu: Key Laboratory of Transport Industry of Big Data Application Technologies for Comprehensive Transport, Beijing Jiaotong University, Beijing 100044, China
Enjian Yao: Key Laboratory of Transport Industry of Big Data Application Technologies for Comprehensive Transport, Beijing Jiaotong University, Beijing 100044, China
Fanglei Jin: Key Laboratory of Transport Industry of Big Data Application Technologies for Comprehensive Transport, Beijing Jiaotong University, Beijing 100044, China
Long Pan: Key Laboratory of Transport Industry of Big Data Application Technologies for Comprehensive Transport, Beijing Jiaotong University, Beijing 100044, China

Energies, 2020, vol. 13, issue 7, 1-19

Abstract: The purchase subsidy policy gives powerful support in battery electric vehicles’ (BEVs) market penetration. However, the purchase subsidy is also a huge financial burden for the government, so it can only be considered as a transitional measure and will be canceled gradually. This paper aims to investigate the impact of purchase subsidy phase-out on BEV adoptions and explore alternative incentive policies to continue stimulating BEV adoptions. A stated preference (SP) survey is conducted in Beijing, and a binary logit (BL) model is established to describe how various factors affect BEV adoption preferences. In addition to the factors related to vehicle techniques, the policies of license plate restrictions and driving restrictions are focused due to Beijing’s unique external policy environment. The vehicle use subsidy and bus line driving permit are tested as alternative incentive policies against the purchase subsidy decrease. The results show that incentive policies can significantly influence BEV adoption intentions. If the purchase subsidy policy is canceled in Beijing, the BEV choice probability will be reduced from 45.94% to 16.62%. In this case, the vehicle use subsidy needs to be set at the level of 4966 CNY/year (714.3 USD/year) to maintain the original BEV choice probability.

Keywords: electric vehicle adoption; purchase intention; subsidy policy; alternative incentive policy; binary logit model (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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