Assessment of Electric Vehicle Incentive Policies in Canadian Provinces

They attribute the insignificant effects of the gasoline price to the correlations between fuel costs and various year and model-specific fixed effects in their regressions.7 In addition to the studies on hybrid vehicle sales, many of the recent studies examine policies to promote the purchase of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) across the US states. [...] In the previously mentioned studies in the US where incentives are mostly in the form of income or sales tax deductions/waivers, the calculation of rebates is dependent on the vehicle price or the distribution of income. [...] The dependent and independent variables and fixed effects are the same as in Equation (8) except that for “Rest of Canada”, I use aggregate EV shares over the provinces included in this group and the averages of each of the independent variables across the given provinces. [...] The effect of incentives is consistent with the estimates in the other specifications in the table, implying an 8 percent increase in the market share of a given EV model due to a $1000 increase in incentives conditional on buying an EV (significant at the 1% level). [...] This may be due to the following reasons: (1) the relative influence of British Columbia’s incentive program over the course of my study, compared to the other two rebating provinces, as well as the cease of the incentives for more than a year in this province, (2) lack of comparable variations in incentives over time in Quebec against the other two rebating provinces despite the high incentive ra.