Green Car Incentives: Industry success in four national EV markets led by incentive schemes

While there are undoubtedly a number of factors impacting the varying rate of uptake of electric and hybrid vehicles (EVs) across the globe, government funded incentive schemes appear to play a key role. This case study investigates the success of some of these schemes in some of the major national markets, in an attempt to establish which facets are central to an effective incentive program.

Scope

Analyzes different incentive schemes for increasing electric vehicle usage

Analyzes industry growth for some of the major national markets

Provides MIT research utilizing some of the main pros & cons behind its approach to government subsidies

Reasons to buy

What are the main benefits of electric vehicles?

Why is the industry growing at such a fast rate?

What sort of incentives do markets use to push EV usage?

Are financial incentives the only factor behind the increase in EVs?

Companies mentioned

None

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Table of Contents

Overview

Catalyst

Summary

UK Fast industry growth result of lower costs and government funded schemes

Carbon saving benefits over conventional vehicles

Huge industry growth over ...

Overview

Catalyst

Summary

UK Fast industry growth result of lower costs and government funded schemes

Carbon saving benefits over conventional vehicles

Huge industry growth over recent years leads to an astonishing forecast ahead for the UK

EVs market share over new purchased vehicles is growing fast

Even with UK government funded incentives, it still makes an EV more expensive than its substitute

Incentive not sole factor for purchase as UK falls behind on EV pledge

Norway has become global front runner in ev market

Norway's growth is strongly down to BEV sales

Role of incentive has had large impact on EV uptake in Norway

The incentive itself is the most generous of its kind

Geographical size, population and electricity production in Norway is also a strong reason behind the success

Norway is tremendously small compared to other major EV markets

A low population increases the EV market share in new car sales

Overproduction in hydroelectric electricity means Norwegians pay less for electricity

Regional incentives have worked better in larger countries

Triple digit growth for China over recent years

Incentives in different regions to be a key explanation to its growth

USA's regional benefits often come down to tax situation

Car and battery manufacturers are challenged with further advancement obligation

MIT research has found a key for policy makers

Critical to the optimization process is prediction of consumer response

Modelling consumer demand

MIT model right to some extent

Conclusions

Incentives are the main contributor to demand increases, but not the only factor

Appendix

Sources

Further Reading

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Disclaimer

List of Tables

Table 1: Examples of purchase costs with and without exemption from vehicle registration tax and value added tax in 2014. Approximate figures in $

Table ...

Table 1: Examples of purchase costs with and without exemption from vehicle registration tax and value added tax in 2014. Approximate figures in $

Table 2: Incentives of local governments to market models manufactured by BYD (in thousands)

List of Figures

Figure 1: EV: Key benefits and hurdles

Figure 2: Hybrid & Electric car sales in the UK

Figure 3: Sales and Market Share of ULEVs ...

Figure 1: EV: Key benefits and hurdles

Figure 2: Hybrid & Electric car sales in the UK

Figure 3: Sales and Market Share of ULEVs in the UK over time

Figure 4: Volume of sales for BEV/PHEV/HEV vehicles in Norway (2008-2015)

Figure 5: Financial incentives and EV market share by country in 2014

Figure 6: Incentives for promoting Battery Electric Vehicle (BEV) adoption in Norway

Figure 7: China EV industry value in ($m)

Figure 8: Subsidies for green technology adoption: Modeling market dynamics

Figure 9: EVs sales before and after the withdrawal of incentives (Netherlands)

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