Pass-through of Electric Vehicle Subsidies: A Global Analysis
Panle Jia Barwick, Hyuk-Soo Kwon, Binglin Wang, Nahim Bin Zahur
Abstract
We investigate the pass-through of electric vehicle (EV) subsidies in 13 countries that account for 95 percent of global EV sales from 2013 to 2020. Our results indicate high pass-through rates of 70-80 percent on average. Pass-through is highest for global firms that sell the same EV models across multiple countries, consistent with uniform pricing by these firms, as well as avoidance of third-party arbitrage. We find suggestive evidence that pass-through is higher for tax incentives than for direct consumer subsidies.
Topics & Concepts
SubsidyArbitrageIncentiveBusinessElectric vehicleMonetary economicsEconomicsInternational economicsMicroeconomicsMarket economyFinanceQuantum mechanicsPhysicsPower (physics)Energy, Environment, and Transportation PoliciesElectric Vehicles and InfrastructureClimate Change Policy and Economics