Effectiveness of policy incentives on electric vehicle acceptance in China: A discrete choice analysis

The Chinese Government has introduced numerous policy incentives to promote the development and adoption of electric vehicles (EVs), especially aggressive subsidization policies. Stimulated by such policies, sales of EVs exceeded 500,000 in 2016. However, the subsidies for EVs will be abrogated after 2020. In order to maintain market stability, the EV-related policy system needs innovation. Nonetheless, it is still unclear how effective different policy incentives are. By conducting a discrete choice experiment involving 247 respondents and using a mixed logit model, this paper investigates the effectiveness of several potential policy incentives except subsidization policies, as well as the influence of socio-psychologist determinants. The results help to offer suggestions for the EV-related policy reformation. As expected, the probability of stated EV-acceptance increases if policy incentives are provided in the choice experiment. EVs are exempted from purchase restrictions (license plate control policy) and driving restrictions in China, and these two transport policy incentives have the most significant positive effects on the EV-acceptance. Discounted/free electric charging also has great contribution. Preferential bus lane access gains increasing attention. Vehicle purchase tax exemption should be resumed because of its positive influence. Comparatively speaking, the financial incentives (e.g., reduced parking fees) in the EV using stage play a weaker role.