Balancing Equity and Effectiveness for Electric Vehicle Subsidies

Subsidizing greenhouse-gas-reducing consumer products is politically popular, but recent literature on subsides ignore effects on product entry and interactions with other climate policies. This paper considers welfare and distributional effects of subsidies for electric vehicles. The author compares subsidy scenarios using a new equilibrium model of the US new vehicles market that endogenizes vehicle entry and accounts for interactions among subsidies and other policies. Income-based subsidies are more effective and more equitable than uniform subsidies. Accounting for interactions with other policies substantially reduces estimated efficacy and increases progressivity of income-based subsidies.

• Record URL:
  https://media.rff.org/documents/WP_22-7_January_2022.pdf
• 
• Summary URL:
  https://www.rff.org/publications/working-papers/balancing-equity-and-effectiveness-for-electric-vehicle-subsidies/
• Supplemental Notes:
  • © 2022 Joshua Linn.
• Corporate Authors:

  Resources for the Future

  Washington, DC  United States 
• Authors:
  • Linn, Joshua
• Publication Date: 2022-1

Language

• English

Media Info

• Media Type: Digital/other
• Features: Appendices; Figures; References; Tables;
• Pagination: 55p

Subject/Index Terms

• TRT Terms: Electric vehicles; Equity; Income; Policy analysis; Subsidies
• Subject Areas: Economics; Highways; Policy; Vehicles and Equipment;

Filing Info

• Accession Number: 01840744
• Record Type: Publication
• Report/Paper Numbers: Working Paper 22-7
• Files: TRIS
• Created Date: Mar 29 2022 9:31AM