Lightning Talk - Transport: Effectiveness of Electric Vehicle Incentives in China

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This document summarizes the effectiveness of electric vehicle incentives in China. It analyzes quarterly EV sales data from 2015-2018 across cities to identify the impact of various incentive policies, including consumer subsidies, exemption from driving restrictions, green plate policies, and charging infrastructure investment. The analysis finds that consumer subsidies and charging infrastructure have significantly promoted EV adoption, with infrastructure being 4 times more cost-effective than subsidies. It also finds green plate policies increased EV sales by 18% from 2016-2018.

Decarbonizing Transport: lightNing Talks
Fan Zhang, world Bank
Effectiveness of Electric Vehicle Incentives in China

Motivation
Source: IEA, EAFO
• China has the largest EV
market in the world
• The study provides the first
empirical evidence on the
effectiveness of various
incentive policies for China’s
EV market

Incentive Policies
• Consumer subsidies
• Exemption from driving restrictions
• Green plate policy
• Charging infrastructure

Incentive Policies
Charging Ports per million Residents by City

Data
• Quarterly EV sales by city and vehicle trim from 2015 to 2018,
including detailed vehicle attributes by trim
• Charging stations information including opening date, location, and
the number of charging ports
• Consumer subsidies and other policies aimed at promoting consumer
adoption of EVs

conclusions
• Consumer subsidies from central and local explain over half of the EVs
sold during 2015-2018.
• Investment on charging infrastructure is about four times as cost-
effective in promoting EV sales as consumer subsidies.
• Green plate policy is very cost-effective in promoting EVs and
increased EV sales by 18% during 2016-2018

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