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Designing policy incentives for cleaner technologies: Lessons from California's plug-in electric vehicle rebate program
Institution:1. Luskin School of Public Affairs, University of California, Los Angeles, United States;2. Department of Economics, University of South Carolina, United States;3. Department of Economics, University of California, San Diego, United States;1. Department of Economics, University of South Carolina, 1014 Greene St., Columbia, SC 29208, USA;2. King Abdullah Petroleum Studies and Research Center (KAPSARC), P.O. Box 88550, Riyadh 11672, Saudi Arabia;1. University of California, Davis, Institute of Transportation Studies, 1605 Tilia Street, Davis, CA 95616, USA;2. California Air Resources Board, PO Box 2815, Sacramento, CA 95812, USA;1. Green Energy Consulting, 88 Berkeley Street, Rochester, NY 14607, 1-585-738-6864, USA;2. University of Michigan, USA;3. Rochester Institute of Technology, USA;1. University of South Carolina, 1014 Greene St, Columbia, SC 29208, United States;2. University of California, Los Angeles, United States;1. Department of Engineering and Public Policy, Carnegie Mellon University, 5000 Forbes Ave., Pittsburgh, PA 15213, United States;2. Ford Motor Company, Dearborn, MI, United States;3. Department of Marketing, Drexel University, 828 Gerri C. LeBow Hall, 3141 Chestnut St., Philadelphia, PA 19104, United States;4. Department of Mechanical Engineering, Carnegie Mellon University, 5000 Forbes Ave., Pittsburgh, PA 15213, United States
Abstract:We assess the performance of alternative rebate designs for plug-in electric vehicles. Based on an innovative vehicle choice model, we simulate the performance of rebate designs that vary in terms of vehicle technologies, consumer income eligibility, and caps on the price of vehicles eligible for subsidies. We compare these alternatives in terms of 1) the number of additional plug-in electric vehicles purchased, 2) cost-effectiveness per additional vehicle purchase induced, 3) total program cost, and 4) the distribution of rebate funding across consumer income classes. Using the status quo rebate policy in California as a reference case, we identify two alternative types of designs that are superior along all four performance criteria.
Keywords:Technology adoption policy  incentives  electric vehicles
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