Subsidizing Mass Adoption of Electric Vehicles: Quasi-Experimental Evidence from California

Little is known about demand for electric vehicles (EVs) in the mass market. In this paper, the authors exploit a natural experiment that provides variation in large EV subsidies targeted at low- and middle-income households in California. Using transaction-level data, the authors estimate two important policy parameters using triple differences: the subsidy elasticity of demand for EVs and the rate of subsidy pass-through. Estimates show that demand for EVs amongst low- and middle-income households is price-elastic and pass-through is complete. The authors use these estimates to calculate the expected subsidy bill required for California to reach its goal of 1.5 million EVs by 2025.

• Record URL:
  https://doi.org/10.7922/G2DF6PDF
• Record URL:
  https://rosap.ntl.bts.gov/view/dot/68854
• Corporate Authors:

  University of California, Davis

  Institute of Transportation Studies
  Davis, CA  United States  95616
• Authors:
  • Muehlegger, Erich J
  • 0000-0002-5670-7895
  • Rapson, David S
  • 0000-0001-8711-7030
• Publication Date: 2018-12

Language

• English

Media Info

• Media Type: Digital/other
• Edition: Final Report
• Features: Appendices; Figures; Maps; References; Tables;
• Pagination: 47p

Subject/Index Terms

• TRT Terms: Demand; Electric vehicles; Low income groups; Middle income groups; Subsidies
• Geographic Terms: California
• Subject Areas: Economics; Highways; Planning and Forecasting; Vehicles and Equipment;

Filing Info

• Accession Number: 01832649
• Record Type: Publication
• Report/Paper Numbers: UC-ITS-2018-33
• Files: NTL, TRIS
• Created Date: Jan 18 2022 9:02AM