The impact of government incentives for hybrid-electric vehicles: Evidence from US states

This paper examines the impact of government incentives policies designed to promote the adoption of hybrid-electric vehicles (HEVs). As a primary methodology, it employs cross-sectional analysis of hybrid registration data over time from US states to test the relationship between hybrid adoption and a variety of socioeconomic and policy variables. It also compares hybrid adoption patterns over time to the US average for specific states that have changed incentive policies, to examine how differences in incentive schemes influence their efficacy. The results of these analyses suggest a strong relationship between gasoline prices and hybrid adoption, but a much weaker relationship between incentive policies and hybrid adoption. Incentives that provide payments upfront also appear to be the most effective.