Comparative Study on Electric Vehicle Policies between Korea and EU countries

To reduce GHS significantly, Korean government announced ambitious EV deployment plan in 2010. According to that plan, one millions of EVs would be provided by 2020. However, the target of EV deployment did not achieved even though strong political support. As a result, our government modified the initial plan by reducing the target number of EVs from 1,000,000 to 200,000. Many EV experts thought such a result arose from wrong policy framework and implementation process. The purpose of paper is to find relevant policy direction in Korea by comparing the policy formulation and implementation process between EU countries and Korea. Concerning the policy formulation, we examined the legislation and planning process to know what to prepare EV policy framework. And for the policy implementing process, we analyzed various incentive measures how to stimulate the deployment of EV. With comparative research results, we drew EV policy implications.


Electric Vehicle Policy
Framework in Korea

Framework in Korea
As mentioned above, the major reasons the policy target was not achieved may have resulted from policy formulation or implementation process.In this context we reviewed the legislation, organization and implementing measures for stimulating EV deployment.

Legislation for EV Deployment
Threes acts for stimulating EV deployment were

Set Roles
In order to implement the EV policy, the Framework Act on Low Carbon, Green Growth

Implementation
As indicated in the previous section, the Korean government could be regarded as a nation that well prepared policy framework for EV.In particular, the level of subsidy was relatively higher compared to other countries.But despite the policy framework EVs were not sold to the degree of expectations.
In this section, in order to know the cause of such weak results, we compared the EV policy framework between EU countries and Korea in terms of policy formulation and implementation process.France, Germany, Netherlands and Norway were selected from among EU countries.
Concerning the policy formulation, we have compared the legislation and planning process.
And for policy implementing process, we compared incentive measures for deployment of EV.

Germany
In Germany, four ministries have been involved in decision making for EV policy; BMWi (Federal   In order to insure the supply of appropriate recharging infrastructure, legislation stimulated that all parking units of newly constructed buildings should be equipped with electricity outlets.Numerous EV demonstration and test projects have also been launched.These projects tested infrastructure and vehicle technologies as well as consumer behavior and business models.

France
EVs benefit from the highest bonus in an emission based fee and rebate (bonus-malus) system.Until July 2012, this bonus amounted to EUR 5,000 per vehicle at a maximum 20% of the purchase price.
Korea is a nation facing a similar situation.More than 20% of fossil energy is used in the transport sector and the increasing rate of energy consumption did not changed as Korea's national economy grew quickly from the 1980s.To significantly reduce GHS, the Korean government announced an ambitious EV deployment plan in 2010.According to that plan, one millions EVs would be provided by 2020.However, the target of EV deployment was not achieved despite strong political support.The current number of EVs deployed in Korea numbers approximately 2,500.As a result, the government modified the initial plan by reducing the target number of EVs from 1 million to 200,000.Many EV experts thought that this result arose from irrelevant policy framework and their implementation process.The purpose of this paper is to propose a relevant policy direction in Korea by comparing the policy formulation and implementation process between EU countries and Korea.To do that, we selected three EU countries including France, Germany, Netherlands and Norway.Concerning the policy formulation, I examined the legislation and planning process to know what to prepare EV policy framework.And for the policy implementing process, I analyzed various incentive measures on how to stimulate the deployment of EV.With comparative research results, I draw EV policy implications for the future.

2. 1
Brief Summary on EV Deployment Korea has been pursuing a green car policy and running various pilot projects to deploy them from 2005.In 2010, the green car road map was released for reducing GHG.According to that plan 1 million BEVs should be provided by 2020.To achieve this goal the Korean government enacted two acts for EV R&D and deployment and also organized the implementing structures at the central governmental level.Many local governments have participated in EV pilot projects.Seoul and Jeju have concentrated on EV policy deployment to reduce externalities caused by the transport sector by replacing internal combustion engine (ICE) vehicles with EV buses and taxis.The new governor of Jeju Island announced recently that by 2030 almost all ICE cars would be replaced with EVs running on electricity generated by wind power.Despite the substantial support by central and local governments, EVs were deployed as per expectations.And the economic incentive, which was an important incentive to deploy EV, would be reduced soon due to financial limitations.In Korea, 3,044 EVs and 3,201 recharging infrastructures were provided.But, it was only 8.7% of the EV deployment target (35,100) in 2014, even though huge subsidies were assigned from central and local governments As a result, EV policy in Korea may be amidst an inflection point.

Figure 1 :
Figure 1: EV Subsidy (Euro) and EV deployment accumulated in Korea enacted since the early 2000s; Law for Eco-Friendly Cars R&D(2004), Law for Low Carbon-Green Growth (2010), and Law for Sustainable Transport Development (2011).The purpose of the Law for Eco-Friendly Cars R&D(2004) is to encourage the consistent development of the automobile industry by threes ministries; Ministry of Trade, Industry and Energy(MOTIE), Ministry of Environment(MOE), and Ministry of Land, Infrastructure and Transport (MOLIT).The law was passed in 2004 and partially revised in 2008 and 2012.This law could be characterized as the first legislation for stipulating R&D and environment-friendly vehicle deployment.It served also to boost environmentfriendly vehicle industries.Compared to the Law for Eco-Friendly Cars R&D (2004), the Law for Low Carbon-Green Growth (2010) aimed to promote development of the national economy by a low carbon-green growth strategy so as to pursue harmonized development of the economy and environment.This law can be characterized as the first law integrating both national and local strategies for greenhouse gas reduction and green growth at the same time.The Law for Sustainable Transport Development (2011) mentioned the role of national government for EV deployment policy in restructuring national transport system in a sustainable way.
instituted their roles among the Ministry of Trade, Industry and Energy (MOTIE), Ministry of Environment (MOE), and Ministry of Land, Infrastructure and Transport (MOLIT).The Presidential Committee on Green Growth (PCGG) played a key role in mediating controversial World Electric Vehicle Journal Vol. 7 -ISSN 2032-6653 -©2015 WEVA problems raised by the three ministries. Ministry of Trade, Industry and Energy: EV R&D and Industry Promotion The MOTIE shall be responsible for technology development and the construction of energycharging infrastructure for environment-friendly motor vehicles.For this purpose, the MOTIE shall establish the development plans and charging equipment distribution plan.Its major tasks include economic measures for the promotion and distribution of electric vehicles, establishment of the development policy for green car core source technology and core part local production technology, establishment of charging stations and smart grid, safety certificate of electric vehicles and charging equipment, and establishment of the standardized charging equipment policy. Ministry of Environment: Deployment of EV and Recharging Infrastructure The MOE shall be responsible for the distribution of environment-friendly motor vehicles.For this purpose, it shall lead the pioneering business for the substantive distribution of environmentfriendly motor vehicles.Its major tasks include the setting of the electric vehicle distribution goal, subsidy support, expansion of the distribution of electric vehicle charging equipment, execution of electric vehicle leading city business, green car mandatory purchase and sale ratio adjustment, and establishment of environment-related regulations. Ministry of Land, Infrastructure and Transport: EV Safety Regulations The MOLIT shall establish the safety standards for automobiles, focusing on electric vehicles, and suggest the improvement directions for the parking lots necessary for the construction of the charging infrastructure.In January 2009, the MOLIT revised the Guidelines on Vehicle Safety, thereby establishing the safety standard on electric vehicles, such as regenerative braking, high voltage devices and battery. Presidential Committee on Green Growth: Control Tower of EV Policy The PCGG was established under the direct control of the President in order to execute "low carbon, green growth" which was presented as the national vision in 2008, as the national task.PCGG had a powerful role to harmonize controversial issues among ministries.In particular, major conflicts have been raised between MOE and MOLTI.For example, MOE wanted to reduce greenhouse gases through providing more electric vehicles as soon as possible.But MOLTI insisted on balancing support between the conventional car industry and EV industry.Also there were conflicts in using governmental subsidy among stakeholders.PCGG played the role of a control tower to coordinate different opinions among the stakeholders and also checked the processing of EV deployment.After the last presidential election (2012), the Office for Government Policy Coordination took over role of PCGG, but the function of control tower did not work as well compared to PCGG.World Electric Vehicle Journal Vol. 7 -ISSN 2032-6653 -©2015 WEVA

Figure 2 :
Figure 2: Controversial issues among ministries in Korea

Figure 3 :
Figure 3: Overviews on legislation and planning process in Korea Ministry of Economics and Technology), BMVBS (Federal Ministry of Transport, Building and Urban Affaire), BMU (Federal Ministry of for the Environment, Nature Conservation and Nuclear Safety) and BMBF (Federal Ministry of Education and Research).Concerning a national EV Plan, a National Development Plan for Electric Mobility (NEPE) was adopted in August 2009.According to this plan, 1 million EVs would be deployed by 2020.To achieve the goal, a national platform for electro mobility (NPE) was established in 2010.The goal was to deliver concrete proposals that help achieve the targets set out in the NEPE.

Figure 4 :
Figure 4: EV policy framework in Germany

World
Electric Vehicle Journal Vol. 7 -ISSN 2032-6653 -©2015 WEVA In France, two ministries are leading in decision making for EV policy; Ministry of Ecology, Sustainable Development and Energy and Ministry of Economy, Finances and Industry.An EV committee constituted by several ministries prepared their EV deployment plan.A national plan for EV development was released in 2009 stipulating that French car manufacturers would deploy two million vehicles by 2020 and 4.5 million by 2025.The 2020 target of French EV deployment is twice of that of Germany.public enterprises such as La Poste (French national post), EDF (É lectricité de France, French national utility) and 12 local municipalities brought 50,000 vehicles over 5 years to guarantee EV demand for OEM (car manufactures).

Figure 5 :
Figure 5: EV policy framework in France

Figure 6 :
Figure 6: EV policy framework in the Netherlands

Figure 9 :
Figure 9: Inflection point of EV policy in Korea

Table 1 :
Characteristics of two laws related to EV policy and technology TypeLaw for Eco-Friendly Cars R&D(2004)Law for Low Carbon-Green Growth (2010)