AEA Papers and Proceedings
ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)
Pass-through of Electric Vehicle Subsidies: A Global Analysis
AEA Papers and Proceedings
vol. 113,
May 2023
(pp. 323–28)
Abstract
We investigate the pass-through of electric vehicle (EV) subsidies in 13 countries that account for 95 percent of global EV sales from 2013 to 2020. Our results indicate high pass-through rates of 70-80 percent on average. Pass-through is highest for global firms that sell the same EV models across multiple countries, consistent with uniform pricing by these firms, as well as avoidance of third-party arbitrage. We find suggestive evidence that pass-through is higher for tax incentives than for direct consumer subsidies.Citation
Barwick, Panle Jia, Hyuk-soo Kwon, Binglin Wang, and Nahim Bin Zahur. 2023. "Pass-through of Electric Vehicle Subsidies: A Global Analysis." AEA Papers and Proceedings, 113: 323–28. DOI: 10.1257/pandp.20231064Additional Materials
JEL Classification
- F23 Multinational Firms; International Business
- H24 Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
- H25 Business Taxes and Subsidies including sales and value-added (VAT)
- L62 Automobiles; Other Transportation Equipment; Related Parts and Equipment