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Market Demand for Electric Vehicles under Technology Improvements and Tax Relief

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  • Bengang Gong
  • Jiali Wang
  • Jinshi Cheng

Abstract

This study aims to find ways to promote the demand for and acceptance of electric vehicles (EVs) by studying the impacts of two policies: tax relief and technology improvements. We find a balanced relationship between the two policies, causing low-carbon awareness to have the same effect on EV demand. Outside of equilibrium, greater low-carbon awareness, rather than price discounts or improved technology, can help improve demand. Furthermore, higher production inputs improve the EV technology level, but changes in the ratio of technology to cost affect customers’ willingness to pay for EV products. Thus, technology and low-carbon awareness affect EV demand.

Suggested Citation

  • 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.
    • Handle: RePEc:mes:emfitr:v:56:y:2020:i:8:p:1715-1729
    DOI: 10.1080/1540496X.2019.1656606
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    Cited by:

    1. 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).

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