Are only demand-based policy incentives enough to deploy electromobility?
Evanthia A. Nanaki, Spyros Kiartzis, George Xydis
Abstract
European Union (EU)’s energy and policy targets necessitate the penetration of new propulsion systems in the automotive industry. In this direction, the deployment of electric vehicles (EVs) and plug-in hybrid electric vehicles that rely on low greenhouse gas emission electricity generation has great potential to significantly alleviate the dependence on fossil fuel consumption in the transport sector. In this study, the policy incentives that different countries have implemented for stimulating the market of EVs are presented. Different policy instruments are examined, in order to support the deployment of EVs in Greece. Based on data from previous study, where total costs of ownership have been calculated, three alternative policy support incentives have been developed and analysed to promote the use of EVs until 2030 in Greece. Results indicate the direct subsidy scheme is more favourable over a carbon taxation system. It is suggested that EV will be competitive with ICE in the year 2022/2023, if no additional policies are implemented in Greece. This study fills the gap in the literature by offering a policy view of the main measures as well of actions that need to be taken in Greece, in order to promote electromobility.