Abstract:

Replacing internal combustion engine vehicles with electric vehicles is the most direct pathway to decarbonize transportation. This paper investigated the environmental benefits of electric vehicle adoption in Shanghai which is China’s largest regional electric vehicle market. Using vehicle registration data and well-to-wheel analysis, this paper calculated the potential emissions reductions of carbon dioxide and air pollutants for each electric vehicle model sold in Shanghai in 2018. The results showed that excessive subsidies had been given to electric vehicles: Less than one-fourth of the mean subsidy was received in the form of an average environmental benefit. Additionally, the environmental advantages were not equally distributed: Less than 20% of the total environmental benefits were produced by about 80% of electric vehicle types. Finally, three policy recommendations were provided to improve the environmental benefits of electric vehicle adoption.