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Estimating the Pollution Abatement Potential of Electric Vehicle Subsidies

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  • Muehlegger, Erich J. PhD
  • Rapson, David S. PhD

Abstract

The true net environmental benefit of an electric vehicle is relative to the vehicle that an electric vehicle buyer would have bought and driven had they not opted for an electric vehicle. This “counterfactual” vehicle cannot be observed, but its fuel economy can be estimated. We use quasi-experimental variation in a generous California electric vehicle subsidy program to show that buyers of electric vehicles would have, on average, purchased fuel-efficient gasoline-powered cars had they not gone electric.

Suggested Citation

  • Muehlegger, Erich J. PhD & Rapson, David S. PhD, 2020. "Estimating the Pollution Abatement Potential of Electric Vehicle Subsidies," Institute of Transportation Studies, Working Paper Series qt8dg237md, Institute of Transportation Studies, UC Davis.
    • Handle: RePEc:cdl:itsdav:qt8dg237md
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    References listed on IDEAS

    as
    1. Jianwei Xing & Benjamin Leard & Shanjun Li, 2019. "What Does an Electric Vehicle Replace?," NBER Working Papers 25771, National Bureau of Economic Research, Inc.
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    More about this item

    Keywords

    Engineering; Electric vehicles; user side subsidies; environmental impacts; consumer behavior; market share; automobile ownership; policy analysis; fuel consumption;
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