IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v191y2024ics1364032123008729.html
   My bibliography  Save this article

The Impact of state policies on electric vehicle adoption -A panel data analysis

Author

Listed:
  • Mekky, Maher F.
  • Collins, Alan R.

Abstract

Using data from fifty U.S. states between 2012 and 2020, the impacts of three types of state level policies on electric vehicles (EV) adoption are examined: 1) policies that mitigate the environmental impacts from energy production, 2) policies that provide financial incentives to consumers for EV purchase, and 3) policies that provide publicly available EV charging infrastructure. With a dependent variable of EV registration per 100,000 population, impacts are assessed with a panel data, fixed effects model. Statistically significant coefficient results are found for environmental, financial, and charging infrastructure policies. Computations of policy changes across four states with low environmental performance and no financial incentives show that increasing renewable and/or nuclear energy sources in the energy mix or reducing carbon dioxide (CO2) emissions from electricity generation have larger impacts on EV adoption than either financial incentives or publicly available charging infrastructure. This research demonstrates the need to both coordinate and nationalize policies that enhance low GHG energy sources in order to uniformly improve EV adoption across all states.

Suggested Citation

  • Mekky, Maher F. & Collins, Alan R., 2024. "The Impact of state policies on electric vehicle adoption -A panel data analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 191(C).
  • Handle: RePEc:eee:rensus:v:191:y:2024:i:c:s1364032123008729
    DOI: 10.1016/j.rser.2023.114014
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032123008729
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.rser.2023.114014?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kenneth T. Gillingham & Arthur A. van Benthem & Stephanie Weber & Mohamed Ali Saafi & Xin He, 2023. "Has Consumer Acceptance of Electric Vehicles Been Increasing? Evidence from Microdata on Every New Vehicle Sale in the United States," AEA Papers and Proceedings, American Economic Association, vol. 113, pages 329-335, May.
    2. Li, Xiaomin & Chen, Pu & Wang, Xingwu, 2017. "Impacts of renewables and socioeconomic factors on electric vehicle demands – Panel data studies across 14 countries," Energy Policy, Elsevier, vol. 109(C), pages 473-478.
    3. Thomas P. Lyon & Haitao Yin, 2010. "Why Do States Adopt Renewable Portfolio Standards?: An Empirical Investigation," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 133-158.
    4. Eunsung Kim & Eunnyeong Heo, 2019. "Key Drivers behind the Adoption of Electric Vehicle in Korea: An Analysis of the Revealed Preferences," Sustainability, MDPI, vol. 11(23), pages 1-15, December.
    5. Kahn, Matthew E., 2007. "Do greens drive Hummers or hybrids? Environmental ideology as a determinant of consumer choice," Journal of Environmental Economics and Management, Elsevier, vol. 54(2), pages 129-145, September.
    6. James B. Bushnell & Erich Muehlegger & David S. Rapson, 2022. "Energy Prices and Electric Vehicle Adoption," NBER Working Papers 29842, National Bureau of Economic Research, Inc.
    7. Clinton, Bentley C. & Steinberg, Daniel C., 2019. "Providing the Spark: Impact of financial incentives on battery electric vehicle adoption," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    8. Seiho Kim & Jaesik Lee & Chulung Lee, 2017. "Does Driving Range of Electric Vehicles Influence Electric Vehicle Adoption?," Sustainability, MDPI, vol. 9(10), pages 1-15, October.
    9. Melton, Noel & Axsen, Jonn & Goldberg, Suzanne, 2017. "Evaluating plug-in electric vehicle policies in the context of long-term greenhouse gas reduction goals: Comparing 10 Canadian provinces using the “PEV policy report card”," Energy Policy, Elsevier, vol. 107(C), pages 381-393.
    10. Jenn, Alan & Azevedo, Inês L. & Ferreira, Pedro, 2013. "The impact of federal incentives on the adoption of hybrid electric vehicles in the United States," Energy Economics, Elsevier, vol. 40(C), pages 936-942.
    11. Adepetu, Adedamola & Keshav, Srinivasan & Arya, Vijay, 2016. "An agent-based electric vehicle ecosystem model: San Francisco case study," Transport Policy, Elsevier, vol. 46(C), pages 109-122.
    12. Langbroek, Joram H.M. & Franklin, Joel P. & Susilo, Yusak O., 2016. "The effect of policy incentives on electric vehicle adoption," Energy Policy, Elsevier, vol. 94(C), pages 94-103.
    13. Linn, Joshua & McConnell, Virginia, 2019. "Interactions between federal and state policies for reducing vehicle emissions," Energy Policy, Elsevier, vol. 126(C), pages 507-517.
    14. Arie Beresteanu & Shanjun Li, 2011. "Gasoline Prices, Government Support, And The Demand For Hybrid Vehicles In The United States," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(1), pages 161-182, February.
    15. Gallagher, Kelly Sims & Muehlegger, Erich, 2011. "Giving green to get green? Incentives and consumer adoption of hybrid vehicle technology," Journal of Environmental Economics and Management, Elsevier, vol. 61(1), pages 1-15, January.
    16. Hardman, Scott, 2019. "Understanding the impact of reoccurring and non-financial incentives on plug-in electric vehicle adoption – A review," Transportation Research Part A: Policy and Practice, Elsevier, vol. 119(C), pages 1-14.
    17. Wee, Sherilyn & Coffman, Makena & La Croix, Sumner, 2018. "Do electric vehicle incentives matter? Evidence from the 50 U.S. states," Research Policy, Elsevier, vol. 47(9), pages 1601-1610.
    18. Wang, Shanyong & Wang, Jing & Li, Jun & Wang, Jinpeng & Liang, Liang, 2018. "Policy implications for promoting the adoption of electric vehicles: Do consumer’s knowledge, perceived risk and financial incentive policy matter?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 117(C), pages 58-69.
    19. Lieven, Theo, 2015. "Policy measures to promote electric mobility – A global perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 82(C), pages 78-93.
    20. Meckling, Jonas & Nahm, Jonas, 2019. "The politics of technology bans: Industrial policy competition and green goals for the auto industry," Energy Policy, Elsevier, vol. 126(C), pages 470-479.
    21. Egnér, Filippa & Trosvik, Lina, 2018. "Electric vehicle adoption in Sweden and the impact of local policy instruments," Energy Policy, Elsevier, vol. 121(C), pages 584-596.
    22. Hidrue, Michael K. & Parsons, George R. & Kempton, Willett & Gardner, Meryl P., 2011. "Willingness to pay for electric vehicles and their attributes," Resource and Energy Economics, Elsevier, vol. 33(3), pages 686-705, September.
    23. Higueras-Castillo, Elena & Kalinic, Zoran & Marinkovic, Veljko & Liébana-Cabanillas, Francisco J., 2020. "A mixed analysis of perceptions of electric and hybrid vehicles," Energy Policy, Elsevier, vol. 136(C).
    24. Wander Jager & Marco A. Janssen, 2002. "Stimulating diffusion of green products," Journal of Evolutionary Economics, Springer, vol. 12(3), pages 283-306.
    25. Shao, Lulu & Yang, Jun & Zhang, Min, 2017. "Subsidy scheme or price discount scheme? Mass adoption of electric vehicles under different market structures," European Journal of Operational Research, Elsevier, vol. 262(3), pages 1181-1195.
    26. Newell, Richard G. & Pizer, William A. & Raimi, Daniel, 2019. "U.S. federal government subsidies for clean energy: Design choices and implications," Energy Economics, Elsevier, vol. 80(C), pages 831-841.
    27. Pascaris, Alexis S., 2021. "Examining existing policy to inform a comprehensive legal framework for agrivoltaics in the U.S," Energy Policy, Elsevier, vol. 159(C).
    28. Zhang, Yong & Yu, Yifeng & Zou, Bai, 2011. "Analyzing public awareness and acceptance of alternative fuel vehicles in China: The case of EV," Energy Policy, Elsevier, vol. 39(11), pages 7015-7024.
    29. Qiu, Y.Q. & Zhou, P. & Sun, H.C., 2019. "Assessing the effectiveness of city-level electric vehicle policies in China," Energy Policy, Elsevier, vol. 130(C), pages 22-31.
    30. Xingping Zhang & Jian Xie & Rao Rao & Yanni Liang, 2014. "Policy Incentives for the Adoption of Electric Vehicles across Countries," Sustainability, MDPI, vol. 6(11), pages 1-23, November.
    31. Axsen, Jonn & TyreeHageman, Jennifer & Lentz, Andy, 2012. "Lifestyle practices and pro-environmental technology," Ecological Economics, Elsevier, vol. 82(C), pages 64-74.
    32. Choi, Hyunhong & Shin, Jungwoo & Woo, JongRoul, 2018. "Effect of electricity generation mix on battery electric vehicle adoption and its environmental impact," Energy Policy, Elsevier, vol. 121(C), pages 13-24.
    33. Ledna, Catherine & Muratori, Matteo & Brooker, Aaron & Wood, Eric & Greene, David, 2022. "How to support EV adoption: Tradeoffs between charging infrastructure investments and vehicle subsidies in California," Energy Policy, Elsevier, vol. 165(C).
    34. Chandra, Ambarish & Gulati, Sumeet & Kandlikar, Milind, 2010. "Green drivers or free riders? An analysis of tax rebates for hybrid vehicles," Journal of Environmental Economics and Management, Elsevier, vol. 60(2), pages 78-93, September.
    35. Smith, William J., 2010. "Can EV (electric vehicles) address Ireland’s CO2 emissions from transport?," Energy, Elsevier, vol. 35(12), pages 4514-4521.
    36. Sierzchula, William & Bakker, Sjoerd & Maat, Kees & van Wee, Bert, 2014. "The influence of financial incentives and other socio-economic factors on electric vehicle adoption," Energy Policy, Elsevier, vol. 68(C), pages 183-194.
    37. Sánchez-Braza, Antonio & Cansino, José M. & Lerma, Enrique, 2014. "Main drivers for local tax incentives to promote electric vehicles: The Spanish case," Transport Policy, Elsevier, vol. 36(C), pages 1-9.
    38. Tran, Martino & Banister, David & Bishop, Justin D.K. & McCulloch, Malcolm D., 2013. "Simulating early adoption of alternative fuel vehicles for sustainability," Technological Forecasting and Social Change, Elsevier, vol. 80(5), pages 865-875.
    39. Hayashida, Sherilyn & La Croix, Sumner & Coffman, Makena, 2021. "Understanding changes in electric vehicle policies in the U.S. states, 2010–2018," Transport Policy, Elsevier, vol. 103(C), pages 211-223.
    40. Lee, Donghyun & Kim, Minki & Lee, Jungyoun, 2016. "Adoption of green electricity policies: Investigating the role of environmental attitudes via big data-driven search-queries," Energy Policy, Elsevier, vol. 90(C), pages 187-201.
    41. Makena Coffman & Paul Bernstein & Sherilyn Wee, 2017. "Electric vehicles revisited: a review of factors that affect adoption," Transport Reviews, Taylor & Francis Journals, vol. 37(1), pages 79-93, January.
    42. Diamond, David, 2009. "The impact of government incentives for hybrid-electric vehicles: Evidence from US states," Energy Policy, Elsevier, vol. 37(3), pages 972-983, March.
    43. Qian Zhang & Xunmin Ou & Xiaoyu Yan & Xiliang Zhang, 2017. "Electric Vehicle Market Penetration and Impacts on Energy Consumption and CO 2 Emission in the Future: Beijing Case," Energies, MDPI, vol. 10(2), pages 1-15, February.
    44. Chen, Feng & Taylor, Nathaniel & Kringos, Nicole, 2015. "Electrification of roads: Opportunities and challenges," Applied Energy, Elsevier, vol. 150(C), pages 109-119.
    45. Bahn, Olivier & Marcy, Mathilde & Vaillancourt, Kathleen & Waaub, Jean-Philippe, 2013. "Electrification of the Canadian road transportation sector: A 2050 outlook with TIMES-Canada," Energy Policy, Elsevier, vol. 62(C), pages 593-606.
    46. Sheldon, Tamara L. & Dua, Rubal, 2019. "Assessing the effectiveness of California's “Replace Your Ride”," Energy Policy, Elsevier, vol. 132(C), pages 318-323.
    47. Bengang Gong & Jiali Wang & Jinshi Cheng, 2020. "Market Demand for Electric Vehicles under Technology Improvements and Tax Relief," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(8), pages 1715-1729, June.
    48. Hardman, Scott, 2019. "Understanding the Impact of Reoccurring and Non-Financial Incentives on Plug-in Electric Vehicle Adoption – A Review," Institute of Transportation Studies, Working Paper Series qt7v13w987, Institute of Transportation Studies, UC Davis.
    49. Das, H.S. & Rahman, M.M. & Li, S. & Tan, C.W., 2020. "Electric vehicles standards, charging infrastructure, and impact on grid integration: A technological review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 120(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alali, Layla & Niesten, Eva & Gagliardi, Dimitri, 2022. "The impact of UK financial incentives on the adoption of electric fleets: The moderation effect of GDP change," Transportation Research Part A: Policy and Practice, Elsevier, vol. 161(C), pages 200-220.
    2. Austmann, Leonhard M., 2021. "Drivers of the electric vehicle market: A systematic literature review of empirical studies," Finance Research Letters, Elsevier, vol. 41(C).
    3. Münzel, Christiane & Plötz, Patrick & Sprei, Frances & Gnann, Till, 2019. "How large is the effect of financial incentives on electric vehicle sales? – A global review and European analysis," Energy Economics, Elsevier, vol. 84(C).
    4. Martin Kalthaus & Jiatang Sun, 2021. "Determinants of Electric Vehicle Diffusion in China," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 80(3), pages 473-510, November.
    5. Makena Coffman & Paul Bernstein & Sherilyn Wee, 2017. "Electric vehicles revisited: a review of factors that affect adoption," Transport Reviews, Taylor & Francis Journals, vol. 37(1), pages 79-93, January.
    6. Wee, Sherilyn & Coffman, Makena & Allen, Scott, 2020. "EV driver characteristics: Evidence from Hawaii," Transport Policy, Elsevier, vol. 87(C), pages 33-40.
    7. Zhang, Junjie & Jia, Rongwen & Yang, Hangjun & Dong, Kangyin, 2022. "Does electric vehicle promotion in the public sector contribute to urban transport carbon emissions reduction?," Transport Policy, Elsevier, vol. 125(C), pages 151-163.
    8. Shang, Wen-Long & Zhang, Junjie & Wang, Kun & Yang, Hangjun & Ochieng, Washington, 2024. "Can financial subsidy increase electric vehicle (EV) penetration---evidence from a quasi-natural experiment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 190(PA).
    9. Chandra, Minal, 2022. "Investigating the impact of policies, socio-demography and national commitments on electric-vehicle demand: Cross-country study," Journal of Transport Geography, Elsevier, vol. 103(C).
    10. Liu, Xiaoling & Sun, Xiaohua & Zheng, Hui & Huang, Dongdong, 2021. "Do policy incentives drive electric vehicle adoption? Evidence from China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 150(C), pages 49-62.
    11. Egnér, Filippa & Trosvik, Lina, 2018. "Electric vehicle adoption in Sweden and the impact of local policy instruments," Energy Policy, Elsevier, vol. 121(C), pages 584-596.
    12. Elena Higueras-Castillo & Sebastian Molinillo & J. Andres Coca-Stefaniak & Francisco Liébana-Cabanillas, 2020. "Potential Early Adopters of Hybrid and Electric Vehicles in Spain—Towards a Customer Profile," Sustainability, MDPI, vol. 12(11), pages 1-18, May.
    13. Peng, Yuan & Bai, Xuemei, 2023. "What EV users say about policy efficacy: Evidence from Shanghai," Transport Policy, Elsevier, vol. 132(C), pages 16-26.
    14. Philip, Thara & Whitehead, Jake & Prato, Carlo G., 2023. "Adoption of electric vehicles in a laggard, car-dependent nation: Investigating the potential influence of V2G and broader energy benefits on adoption," Transportation Research Part A: Policy and Practice, Elsevier, vol. 167(C).
    15. Choi, Siwon & Kwak, Kyuil & Yang, Soyoung & Lim, Sesil & Woo, JongRoul, 2022. "Effects of policy instruments on electric scooter adoption in Jakarta, Indonesia: A discrete choice experiment approach," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 373-384.
    16. Li, Guodong & Walls, W.D. & Zheng, Xiaoli, 2023. "Differential license plate pricing and electric vehicle adoption in Shanghai, China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 172(C).
    17. Jose Esteves & Daniel Alonso-Martínez & Guillermo de Haro, 2021. "Profiling Spanish Prospective Buyers of Electric Vehicles Based on Demographics," Sustainability, MDPI, vol. 13(16), pages 1-22, August.
    18. Haidar, Bassem & Aguilar Rojas, Maria Teresa, 2022. "The relationship between public charging infrastructure deployment and other socio-economic factors and electric vehicle adoption in France," Research in Transportation Economics, Elsevier, vol. 95(C).
    19. Zhang, Tong & Burke, Paul J. & Wang, Qi, 2024. "Effectiveness of electric vehicle subsidies in China: A three-dimensional panel study," Resource and Energy Economics, Elsevier, vol. 76(C).
    20. Clinton, Bentley C. & Steinberg, Daniel C., 2019. "Providing the Spark: Impact of financial incentives on battery electric vehicle adoption," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:191:y:2024:i:c:s1364032123008729. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.