Free-Ridership in Subsidies for Company- and Private Electric Vehicles

Arbeitspapier

Consumer subsidies are commonly employed to incentivize the purchase of battery electric vehicles (BEVs), but free-ridership potentially undermines their effectiveness. The present study investigates BEV subsidies in Germany, distinguishing their effect between company- and private cars. Drawing on a panel of high-resolution car registration data, we use the estimates from a Poisson pseudo-maximum likelihood model to predict BEV registrations in the absence of the subsidy. We calculate aggregate free-rider rates of 19% for private cars and 43% for company cars. We further find that the cost of the subsidy per induced BEV among private consumers is €5,400, while it is €7,215 among companies. Overall, the estimates suggest that the subsidy is considerably less cost effective among company cars, which comprise 55% of new BEV sales.

Angaben zum Objekt

• ISBN: 978-3-96973-181-9
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Ruhr Economic Papers ; No. 1015

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies ; Transportation: General ; Environmental Economics: Government Policy
• Thema: Electric vehicles ; consumer subsidy ; company cars ; free ridership

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Burra, Lavan T. ; Sommer, Stephan ; Vance, Colin
• Ereignis: Veröffentlichung
• (wer): RWI - Leibniz-Institut für Wirtschaftsforschung
• (wo): Essen
• (wann): 2023

Weitere Informationen

• DOI: doi:10.4419/96973181
• Handle: http://hdl.handle.net/10419/270960
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ