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Evaluating Environmental Benefits from Driving Electric Vehicles: The Case of Shanghai

Author

Listed:
  • F. Wei
  • W. D. Walls

    (University of Calgary)

  • X. Zheng
  • G. Li

Abstract

Replacing internal combustible engine vehicles with electric vehicles is the most direct pathway to decarbonize the transportation sector. This paper investigates the environmental benefits of electric vehicle adoption in Shanghai—China’s largest regional electric vehicle market. Using vehicle registration data and Well-to-Wheel analysis, we calculate the potential emissions reductions of carbon dioxide and air pollutants for each electric vehicle model sold in Shanghai in 2018. We find that electric vehicles have been over–subsidized: The average environmental benefit was less than one–fourth of the mean subsidy received. Environmental benefits were not distributed uniformly: About 80% of electric vehicle models generated less than 20% of the aggregate environmental benefits. We suggest three policy recommendations to improve the environmental benefits of electric vehicle adoption.

Suggested Citation

  • F. Wei & W. D. Walls & X. Zheng & G. Li, "undated". "Evaluating Environmental Benefits from Driving Electric Vehicles: The Case of Shanghai," Working Papers 2022-05, Department of Economics, University of Calgary, revised 25 Aug 2022.
    • Handle: RePEc:clg:wpaper:2022-05
    as

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    More about this item

    Keywords

    Electric Vehicles; Environmental Benefits; Subsidy Policy;
    All these keywords.

    JEL classification:

    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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