Abstract:

This analysis assesses the best practices in the design of electric vehicle incentives, comparing them across major markets in North America, Europe, and Asia. It studies the different aspects of electric vehicle incentives, including their magnitude, type, eligibility by technology type, timing of the incentive, and durability of the incentives. The analysis quantifies both what incentives are in place and the link between the incentives and electric vehicle uptake. Based on the findings, the authors outline four principles that are emerging to define the optimal design of electric vehicle incentives. These include making the value of the incentives crystal clear to consumers and dealers, ensuring that the incentives are available to the full target market, and committing to durable incentives that allow manufacturers, dealers, public outreach campaigns, and consumers to rely on them for at least several years.