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Analysis and Testing of Electric Car Incentive Scenarios in the Netherlands and Norway
Background
Both the Norwegian and Dutch federal governments have set a goal of selling only zero emission vehicles (ZEVs) nationwide by 2030. This policy has the additional specification that this goal should not be achieved through command policies (i.e. a total ban on the sale of combustion vehicles), but rather through more voluntary market adoption. This widespread adoption of electric vehicles should help the Netherlands and Norway achieve carbon reduction goals.
METHODOLOGY
To study the potential strength of different electric vehicle incentive policies in the Netherlands and Norway, the research adapted an existing system dynamics model of the EU vehicle market called PTTMAM to the Norwegian and Dutch markets. To specify the model the team used historic data about the affect of different policies on electric vehicle adoption. Aside from baseline scenarios, the models tested a combination of increased taxes on vehicle emissions, manufacturer penalties based on the number of combustion vehicles produced, and consumer incentives for purchasing electric vehicles.
Lessons Learned
- "Polluter pays" taxes are relatively ineffective at encouraging electric vehicle adoption
- A combination of incentives and disincentives like emissions taxes on car owners works best to increase electric vehicle uptake.
Analysis and Testing of Electric Car Incentive Scenarios in the Netherlands and Norway
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