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In the US, over 400 state and local incentives have been issued to increase the adoption of plug-in electric vehicles (PEVs) since 2008. This article quantifies the influence of key incentives and enabling factors like charging infrastructure and receptive demographics on PEV adoption. The study focuses on three central questions. First, do consumers respond to certain types of state level vehicle purchase incentives? Second, does the density of public charging infrastructure increase PEV purchases? Finally, does the impact of various factors differ for plug-in hybrid electric vehicles (PHEV), battery electric vehicles (BEV) and vehicle attributes within each category? Based on a regression of vehicle purchase data from 2008–2016, we found that tax incentives and charging infrastructure significantly influence per capita PEV purchases. Within tax incentives, rebates are generally more effective than tax credits. BEV purchases are more affected by tax incentives than PHEVs. The correlation of public charging and vehicle purchases increases with the battery-only driving range of a PHEV, while decreasing with increasing driving range of BEVs. Results indicate that early investments in charging infrastructure, particularly along highways; tax incentives targeting affordable BEVs and PHEVs with higher battery only range, and better reflection of the environmental cost of owning gasoline vehicles are likely to increase PEV adoption in the US.
Narassimhan et al. (Sun,) studied this question.