Incentive structures for the purchase of electric vehicles in Germany

A difference-in-differences and data regression analysis are used to examine the relation- ship between bonus payments and the share of electric vehicles in new registrations. The approach makes a distinction between the instrument’s causal effect and the magnitude of the subsidy’s influence. In a second part of the data analysis, along with the examination of the premium in Germany, the data set also includes the nations of France, Italy, and Austria because, like Germany, these countries implemented a direct purchase premium for electric vehicles in 2016. This setting provides the opportunity to examine an average effect of the premiums on the market share of electric cars in these countries and add this case study to the existing literature. In a second section of this study, we present results from a survey that investigates the German population’s acceptance of changes in the de- sign of the environmental bonus. In light of the recent decision to a change in the subsidy, the survey provides information on the potential effectiveness of the new design of the instrument. Specifically, a stated-choice model is used to investigate whether participants make a purchase decision for a passenger car under the influence of the modified purchase premium change subsidy. The existing literature on direct purchase incentives for electric cars is expanded with a new case study. In this study, it was demonstrated that the purchase premium has a favorable and statistically significant impact on the German BEVMSR (Battery Electric Vehicle Market Share Rate). Furthermore, a fixed effects panel analysis of data for France, Italy, and Austria revealed that a € 10,000 increase in the premium produces an increase in the BEVMSR of 3 % on average (c. p.). The results of the survey complement this study with insights on how to make the environmental bonus as efficient as possible in terms of a potential increase in BEVMSR. By removing the premium for hybrid-only vehicles, it was found that the adoption of electric vehicles might be sped up using the stated-choice approach. Many poll participants who selected a hybrid vehicle under the previous eco-rebate would do so again under the new scheme. • relationship between bonus payments and the share of electric vehicles in new registrations • examine an average effect of the premiums on the market share of electric cars in Germany, France, Italy, and Austria • results from a survey that investigates the German population’s acceptance of changes in the design of the environmental bonus