Boosting electric vehicle adoption with PCT Policy: Insights from china's private transportation

• PCT policy boost EV adoption rates by 2.29%-14.3%. • Well-developed cities should implement PCT first due to better infrastructure. • Implementing PCT in less developed cities needs higher carbon price to be effective. • Independent carbon pricing is crucial for the early success of PCT in EV markets. • Two methods GAM and MCM have similar incentives for EV market adoption. Personal Carbon Trading (PCT) motivates low-carbon consumption and travel by rewarding sustainable behaviors. This study examines the impact of PCT policies on electric vehicle (EV) adoption in China's private transportation sector. Using a Stackelberg game model involving the government, EV manufacturers, and consumers, it finds that PCT policies can boost EV adoption rates by 2.29% to 14.3%. Each addition of 100,000 new EVs could reduce carbon emissions by 30,000 tons. Effective PCT policies require an independent carbon pricing system and should be implemented where infrastructure and public willingness to pay are high. Both allocation methods are conducive to the promotion of EVs: one facilitates the government in setting regional emission reduction plans, while the other ensures that the government does not incur policy-related expenditures, and different allocation methods should be chosen according to the time and circumstances in different periods of EV market development.