Measuring the CostEffectiveness of Clean Vehicle Subsidies

Tamara Sheldon and Rubal Dua

Discussion Papers from King Abdullah Petroleum Studies and Research Center

Abstract: Demand-side policies, including rebates, sales tax exemptions, and tax credits promote clean vehicle adoption, with the goal of reducing local air pollution and greenhouse gas (GHG) emissions. Limited research to date on their cost-effectiveness and efficiency suggests such subsidies are unsustainably expensive, but this may not tell the whole story. KAPSARC used a nationally representative sample of new car purchases in the United States and developed a vehicle choice model-based simulation to assess the scope for reducing the costs of subsidy policies.

Keywords: Air pollution; Battery capacity; Battery electric vehicles (BEV); Carbon dioxide emissions; Clean vehicle adoption; Economic modeling; Greenhouse Gas Emissions (GHG); Hybrid electric vehicles; Plug-in electric vehicles; Policy simulation; Targeted subsidy design (search for similar items in EconPapers)
Pages: 24 pages
Date: 2018-05
New Economics Papers: this item is included in nep-ene, nep-env and nep-reg
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https://www.kapsarc.org/research/publications/meas ... n-vehicle-subsidies/ First version, 2018 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:prc:dpaper:ks-2018-dp33

DOI: 10.30573/KS--2018-DP033

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