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Electric Vehicle Subsidies and Urban Air Pollution Disparities

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  • Irene Jacqz
  • Sarah Johnston

Abstract

Electric vehicles are subsidized at the federal, state, and local level. The design of these subsidies affects which consumers benefit most and where less-polluting vehicles are driven. We study these effects using a panel of new vehicle purchases at the zip-code level for seven US metro areas. We first describe patterns of neighborhood-level electric vehicle adoption and subsidy receipt. Adoption has been spatially uneven and concentrated in more advantaged and less polluted neighborhoods. We then pair a structural model of vehicle demand with a model of on-road emissions to study the effects of electric vehicle subsidy targeting for the Chicago metro area. A neighborhood income-targeted policy achieves lower overall reductions in carbon emissions but higher reductions in criteria pollution (NOx and PM2.5) in lower-income neighborhoods.

Suggested Citation

  • Irene Jacqz & Sarah Johnston, 2024. "Electric Vehicle Subsidies and Urban Air Pollution Disparities," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 11(S1), pages 41-69.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/732516
    DOI: 10.1086/732516
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