Plug-in Electric Vehicle Policy Effectiveness: Literature .
ANL/ESD-16/8Plug-in Electric Vehicle PolicyEffectiveness: Literature ReviewEnergy Systems Division
About Argonne National LaboratoryArgonne is a U.S. Department of Energy laboratory managed by UChicagoArgonne, LLC under contract DE-AC02-06CH11357. The Laboratory’s mainfacility is outside Chicago, at 9700 South Cass Avenue, Argonne, Illinois 60439.For information about Argonne and its pioneering science and technologyprograms, see www.anl.gov.DOCUMENT AVAILABILITYOnline Access: U.S. Department of Energy (DOE) reports produced after 1991 and agrowing number of pre-1991 documents are available free via DOE’s SciTech Connect(http://www.osti.gov/scitech/)Reports not in digital format may be purchased by the public from theNational Technical Information Service (NTIS):U.S. Department of CommerceNational Technical Information Service5301 Shawnee RdAlexandria, VA 22312www.ntis.govPhone: (800) 553-NTIS (6847) or (703) 605-6000Fax: (703) 605-6900Email: orders@ntis.govReports not in digital format are available to DOE and DOE contractors from theOffice of Scientific and Technical Information (OSTI):U.S. Department of EnergyOffice of Scientific and Technical InformationP.O. Box 62Oak Ridge, TN 37831-0062www.osti.govPhone: (865) 576-8401Fax: (865) 576-5728Email: reports@osti.govDisclaimerThis report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United StatesGovernment nor any agency thereof, nor UChicago Argonne, LLC, nor any of their employees or officers, makes any warranty, expressor implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus,product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specificcommercial product, process, or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or implyits endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions ofdocument authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof,Argonne National Laboratory, or UChicago Argonne, LLC.
ANL/ESD-16/8Plug-in Electric Vehicle PolicyEffectiveness: Literature Reviewprepared byYan Zhou, Todd Levin, and Steven E. PlotkinEnergy Systems Division, Argonne National LaboratoryMay 2016
ANL/ESD-16/8This page intentionally left blank.4
ANL/ESD-16/8ACKNOWLEDGEMENTSThe authors would like to thank the U.S. Department of Energy Office of Energy Policy andSystems Analysis for its support of this research, and in particular Jenah Zweig, NatalieKempkey, and Joseph Teng for their guidance throughout the development of this report. Wealso thank Danilo Santini of Argonne National Laboratory for the contributions and feedbackthat he provided.5
ANL/ESD-16/8ACRONYMSAFV: Alternative Fuel VehicleBEV: Battery Electric VehicleDOE: U.S. Department of EnergyEI: Environmental IndexEVSE: Electric Vehicle Supply EquipmentHOV: High-occupancy VehicleICE: Internal Combustion EngineLDV: Light-duty VehicleNYC: New York CityPEV: Plug-in Electric Vehicle (includes both PHEVs and BEVs)PHEV: Plug-in Hybrid Electric VehicleVMT: Vehicle Miles TraveledZEV: Zero-emission Vehicle6
ANL/ESD-16/8CONTENTSACKNOWLEDGEMENTS . 5ACRONYMS . 6I.INTRODUCTION . 8II.SUMMARY . 9A.Best Practices . 13B.Challenges and Barriers . 14C.Additional Findings . 15D.Research Gaps . 16III.REVIEW OF STUDIES . 19A.Studies Based on Statistical Analysis . 19B.Studies Based on Surveys . 24C.Studies Based on Examples and Experiences . 26IV.CONCLUSIONS. 29V.REFERENCES . 307
ANL/ESD-16/8I.INTRODUCTIONThe U.S. federal government first introduced incentives for plug-in electric vehicles (PEVs)through the American Clean Energy and Security Act of 2009, which provided a tax credit of upto 7,500 for a new PEV purchase. Soon after, in December 2010, two mass-market PEVs wereintroduced, the plug-in hybrid electric vehicle (PHEV) Chevrolet Volt and the battery electricvehicle (BEV) Nissan LEAF. Since that time, numerous additional types of PEV incentives havebeen provided by federal and regional (state or city) government agencies and utility companies.These incentives cover vehicle purchases as well as the purchase and installation of electricvehicle supply equipment (EVSE) through purchase rebates, tax credits, or discounted purchasetaxes or registration fees. Additional incentives, such as free high-occupancy vehicle (HOV) laneaccess and parking benefits, may also be offered to PEV owners. Details about these incentives,such as the extent to which each type is offered by region, can be obtained from the U.S.Department of Energy (DOE) Alternative Fuel Data Center (http://www.afdc.energy.gov/). Inaddition to these incentives, other policies, such as zero-emission vehicle (ZEV) mandates,1 havealso been implemented, and community-scale federal incentives, such as the DOE PEVReadiness Grants, have been awarded throughout the country to improve PEV marketpenetration.This report reviews 18 studies that analyze the impacts of past or current incentives and policiesthat were designed to support PEV adoption in the U.S. These studies were selected for reviewafter a comprehensive survey of the literature and discussion with a number of experts in thefield. The report summarizes the lessons learned and best practices from the experiences of theseincentive programs to date, as well as the challenges they face and barriers that inhibit furthermarket adoption of PEVs. Studies that make projections based on future policy scenarios andthose that focus solely on international markets are not included in this report. Studies that onlyprovide an overview of the current market without discussing how incentives influence themarket are also not included.Since PEVs have only been available to mass-market consumers for roughly five years, andmany PEV incentives have been offered for an even shorter period, there are often insufficientdata to comprehensively analyze the impacts of a given policy or incentive. Robust analysis isfurther complicated by the rapidly evolving marketplace for PEVs in the U.S. due to evolutionssuch as price reductions for vehicles and charging equipment, range improvements, growing newmodel availability and fluctuating gasoline prices. These changes make it difficult to isolate theimpacts of incentives and policies from external market trends. In addition, PEV sales currentlymake up less than 1% of total U.S. light-duty vehicle (LDV) sales—about 113,000 PEVs out of17.5 million LDV sales (Zhou 2016). If PEV sales grow significantly and begin to encompass1ZEV mandates are currently implemented at the state level and generally require car manufacturers to meet aminimum threshold of annual ZEV sales.8
ANL/ESD-16/8more buyers outside of the initial innovators and early adopters—those most likely to be the firstto purchase new technologies—analyses of market behavior will become more robust predictorsof future drivers of increased PEV market penetration.All 18 reviewed studies were published in or after 2014, though none incorporate 2015 sales datainto their analyses. As the market for PEVs continues to grow and evolve in the U.S. and moredata become available, additional research will be needed to evaluate the relative effectiveness ofvarious policies and incentives to promote increased PEV market penetration.II.SUMMARYOf the 18 studies reviewed, 13 studies rely upon statistical analyses, nine of which are driven byregistration/sales data and four of which are driven by survey results, to understand the linkagebetween PEV adoption and federal, state, city or utility actions. The remaining five studiesprovide more qualitative analyses and discussions of how effectively a given policy has beenable to promote PEV adoption, based on examples and experiences. Table 1 summarizes theimpacts of the various policy measures that these studies analyzed. A positive impact isregistered when a quantitative analysis finds a statistically significant positive correlationbetween the policy action and market adoption of electric vehicles, or when a qualitative analysisconcludes that a policy action had a positive impact on market adoption. No impact is registeredwhen an analysis fails to find a statistically significant positive correlation between the policyaction and market adoption of electric vehicles. Currently, there are over 30 actions that havebeen taken by federal government, state or city agencies, and utilities to promote electric vehicleadoption. Not all of these actions were evaluated by the reviewed studies; those that wereevaluated are listed in Table 1. Table 2 provides a short summary of each study with a briefclassification of its methodology. Key findings and broad trends that span multiple studies aresummarized in the following “Best Practices,” “Challenges and Barriers,” and “AdditionalFindings” sub-sections.9
ANL/ESD-16/8Table 1: This table summarizes the various incentives and policy measures that were analyzed by theselected studies. For each policy, the columns denote the number of studies that found 1) a positiveimpact on PEV market adoption, or 2) no statistically significant impact on PEV market adoption. Astudy is considered to be “not applicable” if it did not explicitly analyze the policy measure.Policy MeasurePurchase RebateTax CreditSales Tax WaiverHOV ExemptionParking Exemption aRegistration Fee ReductionCharging AvailabilityPreferential Electricity Ratesfor ChargingEVSE Purchase IncentiveOther Utility PromotionActions2Emission Test ExemptionZero-emission VehicleMandatesLow Carbon Fuel PolicyImpact on PEV Market AdoptionPositive ImpactNo Impact112102226121316110Not Applicable5614111514111721011616220016161017aOne study (Jin et al. 2014) found that the introduction of an additional annual registration fee negatively affectedPEV adoption. This result is interpreted to indicate that registration fee reduction has a positive impact on PEVadoption.2In addition to incentivizing vehicles, charging stations and other EVSE purchases directly, many utilitiesalso undertake other outreach actions, such as promoting the benefits of electric vehicles and providingrelevant information (incentive overviews, information on the EVSE installation process, cost comparisontools, electric vehicle dealership information, etc.) on their websites.10
ANL/ESD-16/8Table 2: A brief summary is provided for each of the 18 reviewed studies along with a characterization ofeach methodology.StudyClinton (2014)Greene et al. (2014a)Jin et al. (2014)Lutsey et al. (2015)Narassimhan andJohnson (2014)Santini et al. (2015a)Santini et al. (2015b)Sierzchula et al. (2014)Selected FindingsStudies based on statistical analysisTax credits and charging infrastructure are statisticallysignificantly positively correlated with BEV registrations.The effects of rebates and HOV access on BEV registrationare positive, but not statistically significant.Both long- and short-term policies are essential in thetransition to an electric drive fleet, though long-term policiesmust evolve intelligently as uncertainty regarding marketdynamics and policy effectiveness lessens over time. Theestimated benefits of a transition to an electric vehicle fleetmay be up to an order of magnitude greater than theassociated costs; however, this trade-off depends on thetiming and intensity of policy interventions. ZEV mandatesappear to be a cost-effective means of supporting thistransition.Stepwise regression analysis shows that the most effectiveincentives for PEV sales (in order of effectiveness) are (1)subsidies (for both vehicles and infrastructure), (2) HOV laneaccess, and (3) emissions testing exemptions, particularly forBEVs.Even large, direct vehicle incentives have limited positiveeffects on PEV adoption if there is limited charginginfrastructure and PEV model availability.(1) State monetary incentives did not increase PHEVpurchases; however, HOV exemptions did. (2) Monetaryincentives significantly increased BEV purchases. (3)Charging infrastructure availability has a significant positiveimpact on both PHEV and BEV purchases.DOE PEV Readiness Grants have a strongly significant andpositive statistical effect on PEV adoption rates in stateswithout other policy measures.Cities and states with utility activities to promote PEVs, butno state-level policies and/or incentives, have lower PEVadoption rates than regions with support from both utilitiesand state governments. Intensely focused city- or metro-levelutility efforts with state support have also achieved somesuccess.Availability of public charging infrastructure is more stronglycorrelated to PEV adoption than direct financial incentives,though both were important. However, neither measure aloneensures high adoption rates.MethodologyLogic model based on2011–2013 salesNested logic vehicle choicemodel with limited salesdataStepwise regression basedon 2013 salesStepwise linear regressionbased on 2014 salesRegression analysis basedon 2013–Q1 2014 salesT-test based on 2013–Q12014 salesT-test based on 2014 salesLinear regression analysisbased on 2012 sales11
ANL/ESD-16/8StudyVergis and Chen (2014)Selected FindingsPublic charging infrastructure, gasoline prices, electricityprices, education level, vehicle miles traveled (VMT) percapita, HOV lane access, and the presence of purchaseincentives are significantly correlated with statewide PEVmarket shares. Future studies should differentiate betweenPHEVs and BEVs.MethodologyRegression analysis basedon 2012–2013 salesStudies based on surveysHardman and Tal(2016)Helveston et al. (2015)Krupa et al. (2014)Tal and Nicholas (2014)Financial purchase incentives are not important in aconsumer’s decision to adopt a high-end BEV. Policy makerscan shift purchase incentives away from high-end buyerswithout having a substantial impact on the market.Consumer preferences in the U.S. and China in 2012–2013were compared through a survey. Results show thatAmerican consumers preferred short-range PHEVs (asopposed to longer-range BEVs) more than Chineseconsumers, even though greater subsidies were offered forBEVs in the U.S. It is hypothesized that this may be becauseapproximately two-thirds of Chinese vehicle purchasers arefirst-time buyers who do not have previous experience withgasoline vehicles and may not have the same rangeexpectations.Raising consumer awareness of up-front incentives (e.g.,purchase rebates) could have a greater impact than raisingawareness of future fuel savings. Promoting gallons of fuelsaved has more of an effect than promoting dollars saved.Survey (553 respondents)and interviews (33)PHEV owners were more likely than BEV owners to identifythe provision of a HOV sticker as a primary motivation intheir purchase decision. However, PHEVs also produce nonelectric miles while traveling in HOV lanes by consuminggasoline once their batteries are depleted. Differentiatingsticker access among different PHEV models based on theirelectric range will help maximize electric VMT.Survey analysis(3,500 respondents)Survey analysis(312 U.S. and 667 Chinarespondents)Survey analysis (1,000respondents)Studies based on examples and experiencesCoplon-Newfield andDevine (2015)Dougherty and Nigro(2014)Green et al. (2013)An immediate rebate is more attractive to consumers than ayear-end tax credit, and nonrefundable tax credits are onlyuseful to those with tax liability.Innovative financial products (such as tax credits, longer loanterms, and securitization) can reduce the costs of capital andhelp move the PEV market toward self-sufficiency, reducingthe need for publicly funded incentives in the longer term(e.g., 15 years).PEV policies would be more effective in achieving potentialincreased adoption and emissions reductions if they focusedon early adopters and niche markets. Past incentive programsQualitative findingsQualitative findingsQualitative findings12
ANL/ESD-16/8StudySelected FindingsLutsey (2015)Vergis et al. (2014)A.with a mainstream bias have proven to be inefficient andcostly. Strategic Niche Management should be embraced as ameans to target early adopters, and accessible loans andfinancing should be supported as potential incentiveofferings.Increasingly stringent fuel efficiency standards, strong PEVresearch and development support, and national PEVplanning appear to be necessary but insufficient actions togrow the PEV market. Non-monetary incentives of varioustypes are important for consumers. Incentives should be madeavailable for those who lease vehicles in addition to thosewho purchase vehicles.A study of PEV incentives in seven different regions findsthat those regions with stronger PEV markets have a greaterfocus on market formation activities and relatively higherPEV cost savings. Market formation incentives, sales targets,and lower fuel costs may be contributing to higher PEVmarket shares in the U.S.MethodologyQualitative findingsQualitative findingsBest PracticesPEV adoption is greatest when multiple actions are taken in parallel.PEV incentives can be offered through a variety of different policy measures, such as direct costreductions, regulations and mandates, infrastructure investments, and non-monetary benefits tovehicle owners (e.g., HOV or parking access). Studies suggest that incentives are mostsuccessful at increasing PEV adoption when multiple incentives are offered simultaneously,especially when policies are combined with awareness campaigns to expand focus on bothmaking vehicles more affordable and attractive and informing consumers about charginginfrastructure availability, where necessary.Clinton (2014) and Lutsey et al. (2015) indicate that the top electric-vehicle-adoption citiestypically had a combination of electric vehicle promotions, greater charging infrastructure percapita, greater consumer incentives, and greater model availability. Sierzchula et al. (2014) alsonote that both charging infrastructure and financial incentives are important to PEV adoption, butneither alone ensured high adoption rates.Policies to reduce the high up-front cost of PEVs can promote early market growth.The high up-front purchase cost has long been considered a major barrier for market adoption ofPEVs. Several studies suggest that rebates and tax credits should be encouraged to reduce theinitial purchase cost, and that it is also important to ensure that s
introduced, the plug-in hybrid electric vehicle (PHEV) Chevrolet Volt and the battery electric vehicle (BEV) Nissan LEAF. Since that time, numerous additional types of PEV incentives have been provided by federal and regional (
1 To avoid ambiguity, we use the term plug-in electric vehicles (PEVs, synonymous with "plug-in vehicles" or "plug-ins"). Technically speaking, the term electric vehicle (EV) may properly refer to either electric-drive vehicles (including all-gasoline hybrids and fuel-cell electric vehicles without grid charging capability) or electric-fuel
power source used in on-road vehicles today . PEVs (plug-in electric vehicles) derive all or part of their power from electricity supplied by the electric grid . They include EVs and PHEVs . PHEVs (plug-in hybrid electric vehicles) use batteries to power an electric motor, plug into the electric grid to charge, and use a petroleum-based or an .
Nissan Leaf is an example of a plug-in electric vehicle. A plug-in hybrid vehicle includes vehicles that plug into the electrical grid to charge a battery pack, and also have a gasoline motor that serves as a back-up or works together with the electric motor. A Chevy Volt is an example of a plug-in hybrid vehicle.
Single Set Screw Termination U R Double Set Screw Termination U R Male Plug Female Plug Male Plug Female Plug 18D21-U* 18D29-U* 18D22-U* 18D31-U* Cable Size: 2/0 - 4/0 Max Ampacity: 400A Single Set Screw Termination U R Double Set Screw Termination U R Male Plug Female Plug Male Plug Female Plug 18D23-U* 18D32-U* 18D24-U* 18D33-U*
Plug-in electric vehicles (PEVs) have immense poten-tial for increasing the country's energy, economic, and environmental security, and they will play a key role in the future of U.S. transportation. A full transition to electric-drive vehicles (including all-electric vehicles, plug-in hybrid electric vehicles, and hybrid electric
The Urban Development and Housing department of Madhya Pradesh has prepared “Madhya Pradesh Electric Vehicle (EV) Policy 2019” to accomplish the objectives of ‘Elec-tric Vehicle Initiative (EVI). Electric Vehicle Initiative (EVI), under Madhya Pradesh Electric Vehicle (EV) Policy 2019, is dedicated to accelerating the deployment of EV’s .
2-wheeler, 3-wheeler and 4-wheeler Hybrid Electric Vehicles (HEV), Plug in Electric Vehicles (PHEV), Battery Electric Vehicles (BEV), and Fuel Cell Electric Vehicle (FCEV). 2.3.2. Electric Vehicle Battery refers to all energy storage systems used in the defined EVs above. This includes Lithium ion batteries, nickel metal
vehicles powered by alternative energy (basically, electric vehicles, plug-in hybrid electric vehicles and fuel-cell electric vehicles) are twice as energy efficient as current ICE vehicles. 4 Srivastava et al (2010) report that the plug-in hybrid vehicle is the next candidate for replacing existing ICE vehicles. The plug-in hybrid vehicle can .
