Targeted EV Subsidies and Market Response: Evidence from California Counties

Abstract This paper quantifies the impact of fiscal subsidies on the spread of electric vehicles (EVs) in California counties. Based on panel data and the double difference (DiD) method, we conducted an in-depth analysis of the role of centralized subsidy policies in promoting electric vehicle market penetration. The study found that the growth rate of electric vehicle registrations in counties and districts that intensively implement fiscal incentives is particularly significant, and low-income communities are particularly prominent. The convenience of charging infrastructure and socio-economic drivers are also important drivers in stimulating the popularity of electric vehicles. The results show that policy formulation plays a pivotal role in equitably accelerating the transformation of clean transportation, and the effect of precise subsidy delivery and supporting investment is particularly significant.