Driving electric vehicles obtain environmental income: A new incentive mechanism with digital technology

Zhengtang Fu and Xi Lu

Energy, 2025, vol. 341, issue C

Abstract: Electric Vehicles (EVs) are widely recognized as a crucial tool for reducing carbon emissions and promoting a cleaner environment. EV users play a significant role in reducing carbon emissions in the transportation sector, however, their eco-friendly driving behaviors have not gained financial income, resulting in injustice during the social energy transition. To address this problem, this paper proposes Electric Vehicle Carbon Reduction Credits (EVCRC) as a new mechanism to benefit EV users for their eco-friendly driving actions. This paper developed a comprehensive framework to quantify the carbon reduction volume of electric vehicles. Additionally, this paper also proposed the EVCRC exchange model to transform these green assets derived from carbon reduction volumes into tradable credits. A digital platform with blockchain was designed, ensuring transparency and efficiency in credit transactions. Finally, a case study utilizing over 10 million real-world EV records in Beijing was conducted to validate the effectiveness of this new incentive mechanism. The results show that high-mileage EV users can significantly reduce emissions (1121.67 kg/month) and earn revenue (509.35 RMB/month). Sensitivity analysis further indicates that the released NEV credit ratio has a 5.7 times greater impact than the EVCRC price, offering scientific support for policy-making. Overall, this paper will strengthen existing EV incentives and inspire more people to adopt this sustainable driving style.

Keywords: Carbon emission reduction; Electric vehicle; Incentive mechanism; Credit transaction; Business innovation; Blockchain (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:341:y:2025:i:c:s0360544225049540

DOI: 10.1016/j.energy.2025.139312

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