Which Green Technology to Subsidize? Evidence from Electric Vehicles in South Korea
Updated
Updated · arxiv.org · Sep 15
Which Green Technology to Subsidize? Evidence from Electric Vehicles in South Korea
1 articles · Updated · arxiv.org · Sep 15
Summary
A new study finds that subsidizing hybrid electric vehicles (HEVs) in South Korea would reduce greenhouse gas emissions more than subsidizing battery electric vehicles (BEVs).
The research shows reallocating existing BEV subsidies to HEVs could cut emissions by an additional 47%, due to greater consumer substitution from traditional cars.
The study suggests BEV-focused policies will only surpass HEVs in effectiveness if South Korea’s electricity generation becomes significantly cleaner.