Scandinavian Working Papers in Economics

Memorandum,
Oslo University, Department of Economics

No 1/2022: Local Incentives and Electric Vehicle Adoption

Askill H. Halse (), Karen E. Hauge (), Elisabeth T. Isaksen (), Bjørn G. Johansen () and Oddbjørn Rauum ()
Additional contact information
Askill H. Halse: Institute of Transport Economics
Karen E. Hauge: Ragnar Frisch Centre for Economic Research
Elisabeth T. Isaksen: Ragnar Frisch Centre for Economic Research
Bjørn G. Johansen: Institute of Transport Economics
Oddbjørn Rauum: Ragnar Frisch Centre for Economic Research

Abstract: We study how the adoption of battery electric vehicles – a key technology for decarbonizing transportation – responds to two local privileges: road toll exemption and bus lane access. Combining rich Norwegian microdata with a quasi-experimental research design where we exploit household-level variations in incentives on work commutes, we find sizable and positive effects on electric vehicle ownership. The increase in electric vehicles from having road tolls and bus lanes on work commutes is offset by a similar decline in conventional vehicles. Road tolls also reduce brown driving, but lower CO2 emissions are largely explained by the existence of fewer conventional vehicles.

Keywords: electric vehicles; local incentives; road tolls; bus lanes

JEL-codes: H23; Q55; Q58; R41; R48

Language: English

44 pages, March 7, 2022

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