Incentives to Encourage the Adoption of Connected and Automated Vehicles: Lessons Learned from Hybrid-Electric Vehicle Incentive Programs
Abstract
:1. Introduction
2. Materials and Methods
3. Findings
3.1. Effectiveness of Fiscal Incentive Programs
3.1.1. Purchase Subsidies
3.1.2. Accelerated Vehicle Retirement/Scrappage Programs
3.1.3. Post-Purchase Subsidies
3.1.4. Income Tax Incentives
3.2. Effectiveness of Non-Fiscal Incentive Programs
3.2.1. Free Parking
3.2.2. Toll/Ferry Fee Exemption
3.2.3. HOV/Bus Lanes
3.3. Effectiveness of Indirect Incentive Programs
Gas/Carbon Tax
4. Discussion
- How much of a purchase subsidy is good enough to encourage people to buy CAVs?
- How long should the incentive program run?
- Who is eligible for the incentive?
- How can these programs be revenue-neutral?
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Country | Fiscal Incentive | Non-Fiscal Incentives | Indirect Incentives | |||||
---|---|---|---|---|---|---|---|---|
Purchase | Scrappage | Post-Purchase | Income Tax | Free/Reduced Parking Fees | HOV or Bus Lane | Toll/Ferry Fee Exemption | Gas/Carbon Tax | |
China | ✓ | ✓ | ✓ | |||||
Japan | ✓ | ✓ | ✓ | |||||
Singapore | ✓ | |||||||
South Korea | ✓ | ✓ | ✓ | |||||
UAE | ✓ | ✓ | ||||||
Denmark | ✓ | ✓ | ✓ | ✓ | ||||
Germany | ✓ | ✓ | ||||||
Norway | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | ||
Switzerland | ✓ | |||||||
Netherlands | ✓ | ✓ | ✓ 2 | ✓ | ||||
UK | ✓ | ✓ | ✓ | ✓ 1 | ✓ | |||
Canada | ✓ | |||||||
U.S. | ✓ | ✓ | ✓ | ✓ | ✓ 1 | ✓ 1 | ✓ 1 | |
Australia | ✓ 1 | ✓ 1 | ||||||
New Zealand | ✓ |
Fiscal Incentives | Region | Effective | Not Effective |
---|---|---|---|
Purchase Subsidies | U.S. | Sullivan et al. [13]; Jin et al. [14]; Yang et al. [15]; Diamond [16]; Gallagher and Muehlegger [17]; Narassimhan and Johnson [18] | Eppstein et al. [19]; Hardman and Tal. [20] |
OC | Yang et al. [15]; Sierzchula et al. [21]; Bjerkan et al. [22]; Shepherd et al. [23] | Antweiler and Gulati [24] | |
Accelerated Vehicle Retirement/Scrappage Programs | U.S. | Zhang et al. [10] | - |
OC | Brand et al. [25] | - | |
Post-Purchase Subsidies | U.S. | Gordon et al. [26] | Yang et al. [15] |
OC | - | - | |
Income Tax Incentives | U.S. | Diamond [16]; Narassimhan and Johnson [18]; Beresteanu and Li [27]; Clinton [28]; Tal and Nicholas [29] | Gallagher and Muehlegger [17]; Eppstein et al. [19]; Skerlos and Winebrake [30]; |
OC | Aasness and Odeck [11]; Sierzchula et al. [21]; Zhou et al. [31]; Fearney et al. [32] | - |
Non-Fiscal Incentives | Region | Effective | Not Effective |
---|---|---|---|
Free Parking | U.S. | Zhou et al. [31] | Jin et al. [14] |
OC | Langbroek et al. [36]; Zhou et al. [31]; Zheng [37] | Fearney et al. [32]; Aasness and Odeck [11] | |
Toll/Ferry fee exemption | U.S. | Zhou et al. [31] | - |
OC | Figenbaum et al. [38] | Sime and Sivertsen [39]; Bakker and Trip [40] | |
HOV/Bus Lanes access | U.S. | Jin et al. [14]; Narassimhan and Johnson [18]; Tal and Nicholas [41] | Saphores and Dillon [42] |
OC | Zhou et al. [31]; Fearney et al. [32] | Bakker and Trip [40]; Mersky et al. [43] |
Region | Effective | Not Effective |
---|---|---|
U.S. | Diamond [16]; Gallagher and Muehlegger [17]; Beresteanu and Li [27]; Fox et al. [46] | - |
OC | Lane and Potter [47] | - |
Type of Incentive | Advantages | Disadvantages |
---|---|---|
Purchase Subsidies | Monetary benefit from this subsidy is valued highly Helpful to spur the market | Expensive to run the program long-term. Free riders |
Accelerated Vehicle Retirement/ Scrappage Programs | Influence sales of new vehicles Economic stimulus | Free riders |
Post-Purchase Subsidies | Discounting energy rates and exemption on travel limits are attractive | Monetary benefit from this subsidy is valued lower than the face value |
Income Tax Incentives | Do not require an outlay of cash | Require effort and understanding. Lower income people will not benefit significantly |
Free Parking | Effective when parking spaces are limited | Few parking spaces for paying users Do not make EVs affordable Increases EV parking and driving use |
HOV/Bus Lanes | Nominal investment required | Causes congestion/delay |
Gas/Carbon Tax | Discourage conventionally fueled vehicles | Loss of revenue when number of EV/BEV rises |
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Penmetsa, P.; Dhondia, S.; Adanu, E.K.; Harper, C.; Nambisan, S.; Jones, S. Incentives to Encourage the Adoption of Connected and Automated Vehicles: Lessons Learned from Hybrid-Electric Vehicle Incentive Programs. Future Transp. 2023, 3, 986-995. https://doi.org/10.3390/futuretransp3030054
Penmetsa P, Dhondia S, Adanu EK, Harper C, Nambisan S, Jones S. Incentives to Encourage the Adoption of Connected and Automated Vehicles: Lessons Learned from Hybrid-Electric Vehicle Incentive Programs. Future Transportation. 2023; 3(3):986-995. https://doi.org/10.3390/futuretransp3030054
Chicago/Turabian StylePenmetsa, Praveena, Sakina Dhondia, Emmanuel Kofi Adanu, Corey Harper, Shashi Nambisan, and Steven Jones. 2023. "Incentives to Encourage the Adoption of Connected and Automated Vehicles: Lessons Learned from Hybrid-Electric Vehicle Incentive Programs" Future Transportation 3, no. 3: 986-995. https://doi.org/10.3390/futuretransp3030054