Impact of policy incentives on the adoption of electric vehicle in China

Yiran Liu, Xiaolei Zhao, Dan Lu and Xiaomin Li

Transportation Research Part A: Policy and Practice, 2023, vol. 176, issue C

Abstract: Based on monthly data on electric vehicle (EV) sales in China from 2012 to 2020, a vector autoregressive model (VAR) and a vector error correction model (VECM) are used to empirically examine the long-term and short-term impacts of EV policy incentives in China. EV policy incentives, including monetary incentives, privilege incentives, demonstration incentives and charging incentives, are discussed from the perspective of policy combinations, and a variance decomposition analysis is used to solve the problem that the impact of policy incentives could not be compared cross-sectionally due to inconsistent units of measurement. The results reveal that in the short term, the policy combinations of monetary incentives and administrative controls, including purchase subsidy, purchase tax exemption and vehicle purchase restriction, are more effective in increasing the demand for EVs. However, in the long term, the policy combinations of privilege incentives, charging incentives and demonstration incentives are more effective in accelerating the adoption of EVs, such as no driving or purchase restrictions, improved charging networks, public procurement and gasoline price have a more significant long-term impact on EV sales. Monetary incentives and administrative controls should not be completely removed.

Keywords: Electric vehicle; EV incentives; Long-term and short-term; Policy combinations; China (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0965856423002215
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:transa:v:176:y:2023:i:c:s0965856423002215

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.tra.2023.103801

Access Statistics for this article

Transportation Research Part A: Policy and Practice is currently edited by John (J.M.) Rose

More articles in Transportation Research Part A: Policy and Practice from Elsevier
Bibliographic data for series maintained by Catherine Liu ().