Pass-through of Electric Vehicle Subsidies: A Global Analysis

Panle Barwick (), Hyuk-soo Kwon, Binglin Wang and Nahim Bin Zahur

AEA Papers and Proceedings, 2023, vol. 113, 323-28

Abstract: We investigate the pass-through of electric vehicle (EV) subsidies in 13 countries that account for 95 percent of global EV sales from 2013 to 2020. Our results indicate high pass-through rates of 70-80 percent on average. Pass-through is highest for global firms that sell the same EV models across multiple countries, consistent with uniform pricing by these firms, as well as avoidance of third-party arbitrage. We find suggestive evidence that pass-through is higher for tax incentives than for direct consumer subsidies.

JEL-codes: F23 H24 H25 L62 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (2)

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DOI: 10.1257/pandp.20231064

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