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Elektrifiering utan stöd: En studie av elbilsmarknaden när subventioner försvinner

Nelsson, Anna LU and Bergman, Johanna LU (2025) NEKH03 20242
Department of Economics
Abstract
Within the upcoming decade many countries have the ambition of banning the sale of new cars that emit carbon dioxide in order to reduce greenhouse gas emissions from the transport sector. Electric cars have been established as a key solution to combat climate change by replacing traditional internal combustion engine (ICE) vehicles which are being banned. To support the transition from ICE vehicles to electric vehicles (EV) various policy instruments are being employed, with purchase subsidies being one. The purpose of this study is to investigate the impact of the abolishment of purchase subsidies towards electric cars. With a two-stage difference-in-difference method we investigate quarterly panel data between 2019 and 2024 in Austria,... (More)
Within the upcoming decade many countries have the ambition of banning the sale of new cars that emit carbon dioxide in order to reduce greenhouse gas emissions from the transport sector. Electric cars have been established as a key solution to combat climate change by replacing traditional internal combustion engine (ICE) vehicles which are being banned. To support the transition from ICE vehicles to electric vehicles (EV) various policy instruments are being employed, with purchase subsidies being one. The purpose of this study is to investigate the impact of the abolishment of purchase subsidies towards electric cars. With a two-stage difference-in-difference method we investigate quarterly panel data between 2019 and 2024 in Austria, Finland, France, Germany and United Kingdom. Our findings show that there are no large negative effects of removing purchase subsidies. When running a regression with only the countries who motivated a selfsustained EV market as the reason for abolishment of the subsidies, it yields more significant results and a higher, positive average effect of treatment on the treated (ATT). This study contributes to a broader understanding of the short-term effects of abolishing purchase subsidies towards electric cars and can assist policymakers to understand the consequences. (Less)
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author
Nelsson, Anna LU and Bergman, Johanna LU
supervisor
organization
course
NEKH03 20242
year
type
M2 - Bachelor Degree
subject
keywords
Electric Cars, Purchase Subsidies, Difference-in-Difference, Policy, Sustainable Transition
language
Swedish
id
9181579
date added to LUP
2025-05-16 10:51:27
date last changed
2025-05-16 10:51:27
@misc{9181579,
  abstract     = {{Within the upcoming decade many countries have the ambition of banning the sale of new cars that emit carbon dioxide in order to reduce greenhouse gas emissions from the transport sector. Electric cars have been established as a key solution to combat climate change by replacing traditional internal combustion engine (ICE) vehicles which are being banned. To support the transition from ICE vehicles to electric vehicles (EV) various policy instruments are being employed, with purchase subsidies being one. The purpose of this study is to investigate the impact of the abolishment of purchase subsidies towards electric cars. With a two-stage difference-in-difference method we investigate quarterly panel data between 2019 and 2024 in Austria, Finland, France, Germany and United Kingdom. Our findings show that there are no large negative effects of removing purchase subsidies. When running a regression with only the countries who motivated a selfsustained EV market as the reason for abolishment of the subsidies, it yields more significant results and a higher, positive average effect of treatment on the treated (ATT). This study contributes to a broader understanding of the short-term effects of abolishing purchase subsidies towards electric cars and can assist policymakers to understand the consequences.}},
  author       = {{Nelsson, Anna and Bergman, Johanna}},
  language     = {{swe}},
  note         = {{Student Paper}},
  title        = {{Elektrifiering utan stöd: En studie av elbilsmarknaden när subventioner försvinner}},
  year         = {{2025}},
}