The Governance of Smart Transportation Systems by Unknown

Author:Unknown
Language: eng
Format: epub
ISBN: 9783319965260
Publisher: Springer International Publishing

Purchase subsidies

Tax benefits

Other financial benefits

Infrastructure measures

Traffic regulations

Australia

Belgium

x

x

x

Brazil

x

x

Canada

x

x

x

China

x

x

x

France

x

x

x

Germany

x

x

x

Hong Kong

x

India

x

x

x

Italy

x

x

x

x

Japan

x

Korea

x

x

x

Netherlands

x

x

Norway

x

x

x

Russia

x

South Africa

Switzerland

x

Taiwan

x

UK

x

x

x

x

USA

x

x

x

x

7.2.2.1 Monetary Measures

Monetary measures include incentives such as purchase subsidies and tax benefits for EV buyers. As can be seen from Table 7.1, these are the most common measures taken by governments in the 20 countries considered in this analysis. In fact, all of the countries, except Australia and South Africa, offer some form of fiscal incentive for EV buyers. Nonetheless, there are significant cross-country differences between these fiscal measures. For example, Belgium and Canada both offer financial incentives but primarily on a regional basis. In the USA, there are also differences between states. In addition to the national tax incentive of US$2500 to US$7500 (Office of Energy Efficiency & Renewable Energy 2018), a number of states have also implemented statewide subsidies. For example, California offers additional rebates of up to US$2500 (van der Steen et al. 2015). However, most other countries predominantly offer incentives at only a national level. For example, Germany, China, France, India, Italy, Korea, and the UK have implemented a combination of both purchase subsidies and tax benefits. The values and extents of these benefits differ significantly (Beltramello 2012; EAFO 2017a; Government of NCT of Delhi 2016; IEA IA-HEV 2014, 2016; Kim and Yang 2016; OECD/IEA 2016; Rokadiya and Bandivadekar 2016; van der Steen et al. 2015). In addition, various changes have already occurred in terms of the types and levels of incentives offered over time. For example, while Japan used to have a combined policy of subsidies and tax benefits in the form of acquisition and tonnage tax exemptions between 2009 and 2012 (JAMA 2010a), it now only offers purchase subsidies under the Green Vehicle Purchasing Promotion and the Clean Energy Subsidy program (Hao et al. 2014; JAMA 2010b). Therefore, policy strategies should not be considered fixed, since governments adapt them over time.

Moreover, countries such as Brazil, Hong Kong, the Netherlands, Norway, Switzerland, and Taiwan do not offer any national subsidies but different forms of tax benefits. For example, EV owners in Brazil have benefited from a reduction in the Motor Vehicle Property Tax (MVPT) since 2014, the level of which differs between regions within the country (such as a 50% reduction in São Paulo) (Benvenutti et al. 2016; Prefeitura de São Paulo 2015). In the Netherlands, EV owners are exempt from registration and road taxes (50% reduction for PHEVs), although a slow phaseout of fiscal incentives for PHEVs has been announced for the period between 2017 and 2020 (EAFO 2017a; IEA IA-HEV 2013). Other countries offer purchase, registration, and/or annual road-tax exemptions or reductions. In Norway, this greatly affects the price of EVs, since the purchase tax, which is the same as the country’s import tax, equals 25% (EAFO 2017a). Combined with an annual road tax that is reduced to 455 kroner (approximately US$55) from 2820 or 3290 kroner (approximately US$344 or US$400) for conventional vehicles (The Norwegian Tax Administration 2017). This can add up to a total fiscal incentive of approximately US$25,000 over 10 years.

In addition, some countries have implemented a number of other financial incentives.

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