Publication Details

Title : Incentivizing adoption of plug-in electric vehicles: A review of global policies and markets
Publication Date : June 01, 2018
Authors : T. Stephens, Y. Zhou, A. Bumham, M. Wang
Abstract : This report summarizes current government policies that seek to increase deployment of
light-duty, plug-in electric vehicles (PEVs) in the United States, Europe, and China. The paper
also describes recent PEV market trends in these three regions. By comparing combinations of
PEV policies and trends of PEV sales in different regions at national and subnational levels, the
authors make several observations and draw general conclusions, using supporting examples for
the findings. One finding, consistent with earlier studies, is that multiple, complementary PEV
incentives and deployment policies are generally more effective in increasing adoption of PEVs
within a given market than single policies. In most regions, financial incentives, especially pointof-
sale incentives, are effective in increasing adoption, particularly when generous and combined
with other supporting polices, such as increasing charging station availability, which contributes
to ease of use. The authors also observed differences in policies and market trends between
regions. In Europe, where taxes on vehicles are high, tax credits provide strong incentives for
PEV adoption, whereas in several Chinese cities, where restrictions on vehicle registration or use
are imposed, relaxation of restrictions on PEVs effectively promote PEV adoption. In addition,
governments are replacing some policies based on technical specifications (e.g., battery capacity)
with policies based on performance metrics (e.g., vehicle range and electricity consumption rate
per distance).

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