Policy Instruments for Plug-In Electric Vehicles: An Overview and Discussion

Book chapter, 2021

Many different policy instruments have been implemented globally to support the uptake of plug-in electric vehicles (PEVs), with the ambition to curb growth in, and ultimately reduce greenhouse gas emissions from the ever-expanding transportation sector. While the market continues grow, most consumers are still not choosing to adopt PEVs due to three principal barriers: a lack of PEV supply, high upfront investment costs, and other systemic failures, such as a perceived lack of public charging infrastructure. It is evident that there is no “silver bullet” policy instrument that can simultaneously address all of these market barriers. Despite this, success is being witnessed in leading PEV markets through the implementation of comprehensive policy packages, which vary in type and purpose, and are part of broader, long-term PEV diffusion strategies. The efficacy of many policy instruments is ultimately context and regionally-dependent, and therefore, PEV policy must be tailored to suit local circumstances.