Policies for Electrifying the Light-Duty Vehicle Fleet in the United States
Cassandra R. Cole, Michael Droste, Christopher R. Knittel, Shanjun Li, James H. Stock
Abstract
Decarbonization of light-duty vehicles (LDVs) in the United States is an important policy priority. We investigate the roles of the Infrastructure Investment and Jobs Act and the Inflation Reduction Act in accelerating the transition of LDVs to electric vehicles. We additionally consider alternate allocations of government funds for subsidized construction of charging stations and refundable tax credits for electric vehicles. We find that charging station subsidies are extremely effective as measured by impact for a given fiscal expenditure. All of the policies we consider have estimated costs below the most recent estimate of the social cost of carbon.
Topics & Concepts
SubsidyGovernment (linguistics)Investment (military)Public economicsElectrificationInflation (cosmology)BusinessDutyEconomicsFinanceElectricityEngineeringPolitical scienceMarket economyLawPhilosophyElectrical engineeringTheoretical physicsPhysicsLinguisticsPoliticsEnergy, Environment, and Transportation PoliciesElectric Vehicles and InfrastructureTransportation and Mobility Innovations