AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Policies for Electrifying the Light-Duty Vehicle Fleet in the United States
AEA Papers and Proceedings
vol. 113,
May 2023
(pp. 316–22)
Abstract
Decarbonization of light-duty vehicles (LDVs) in the United States is an important policy priority. We investigate the roles of the Infrastructure Investment and Jobs Act and the Inflation Reduction Act in accelerating the transition of LDVs to electric vehicles. We additionally consider alternate allocations of government funds for subsidized construction of charging stations and refundable tax credits for electric vehicles. We find that charging station subsidies are extremely effective as measured by impact for a given fiscal expenditure. All of the policies we consider have estimated costs below the most recent estimate of the social cost of carbon.Citation
Cole, Cassandra, Michael Droste, Christopher Knittel, Shanjun Li, and James H. Stock. 2023. "Policies for Electrifying the Light-Duty Vehicle Fleet in the United States." AEA Papers and Proceedings, 113: 316–22. DOI: 10.1257/pandp.20231063Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- H25 Business Taxes and Subsidies including sales and value-added (VAT)
- H54 National Government Expenditures and Related Policies: Infrastructures; Other Public Investment and Capital Stock
- L62 Automobiles; Other Transportation Equipment; Related Parts and Equipment
- L94 Electric Utilities
- Q54 Climate; Natural Disasters and Their Management; Global Warming