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.
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?
With some countries worldwide, regulating incentives on a national scale is not quite viable being that many must propose regulation and incentive dependent on the countries region or state. Examples such as China and the US have different laws applicable to different regions. Norway has become a global front runner in the field of electro mobility and the Battery Electric Vehicle (BEV) market share is far higher than any other country. The apparent success of incentive policies for increasing sales of BEVs makes Norway an interesting case to learn from for other regions aiming to move in the same direction. Also, the diversity of incentives allows for discerning which strategies are likely to be the most successful in order to achieve higher market shares of any type of EVs. Georgia Perakins of the MIT Sloan School of Management has developed a model that will help government decision makers set optimal subsidies to encourage the adoption of a green technology, taking into account the probable responses of suppliers and buyers of the new technology (in this case, EVs).