The Role of Government in the Market for Electric Vehicles : Evidence from China
To promote the development and diffusion of electric vehicles, central and local governments in many countries have adopted various incentive programs. This study examines the policy and market drivers behind the rapid development of the electric v...
| Main Authors: | , , , , |
|---|---|
| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/776201597325973519/The-Role-of-Government-in-the-Market-for-Electric-Vehicles-Evidence-from-China http://hdl.handle.net/10986/34356 |
| Summary: | To promote the development and diffusion
of electric vehicles, central and local governments in many
countries have adopted various incentive programs. This
study examines the policy and market drivers behind the
rapid development of the electric vehicle market in China,
by far the largest one in the world. The analysis is based
on the most comprehensive data on electric vehicle sales,
local and central government incentive programs, and
charging stations in 150 cities from 2015 to 2018. The study
addresses the potential endogeneity of key variables, such
as local policies and charging infrastructure, using the
border regression design and instrumental variable method.
The analysis shows that central and local subsidies
accounted for over half of the electric vehicles sold during
the data period. Investment in charging infrastructure is
much more cost-effective than consumer purchase subsidies.
In addition, the policy that merely provided electric
vehicles a distinctively license plate was strikingly
effective. These findings demonstrate the varying efficacy
across policy instruments and highlight the critical role of
government in promoting fuel-saving technologies. |
|---|