ISSN (print) - 0131-7652

ISSN (online) - 2686-7605

Vol. 56 No. 5 (2026)
ECONOMY SECTORS AND MARKETS

Government Support for Electric Vehicle Demand: International Practices

Requires Subscription or Fee PDF (Русский) (RUB 200)
  • T.V. Tishchenko
T.V. Tishchenko
Russian Presidential Academy of National Economy and Public Administration
DOI: https://doi.org/10.30680/ECO0131-7652-2026-5-73-97

Published 2026-10-19

Keywords

  • electric vehicles; government policy; budgetary subsidies; tax incentives; demand stimulation

How to Cite

1.
Tishchenko Т. Government Support for Electric Vehicle Demand: International Practices. ECO [Internet]. 2026 Oct. 19 [cited 2026 Nov. 9];56(5):73-97. Available from: https://ecotrends.ru/index.php/eco/article/view/5002

Abstract

This paper reviews tax incentives and government subsidies designed to stimulate demand for electric vehicles in the European Union, Southeast Asia, and the United States. It highlights trends toward reducing subsidy amounts, imposing price caps on subsidized electric vehicles, and expanding support programs to include the used vehicle market. Specific conditions for support in some countries include restrictions on the buyer’s income and requirements for local production. Conceptual proposals have been developed for government measures to support demand for electric vehicles in the Russian Federation.
Requires Subscription or Fee PDF (Русский) (RUB 200)

References

  1. Бучнев А.О., Бучнев О.А. Особенности стимулирования внедрения электромобильного транспорта как цель государственной политики // Государственная служба. 2023. № 2. С 80–87.
  2. Дежина И.Г., Раднабазарова С.Ж. Стимулирование спроса на электромобили в мире и российский контекст // Мировая экономика и международные отношения. 2022. T. 66, № 7. C. 55–65. https://doi.org/10.20542/0131–2227–2022–66–7–55–65
  3. Текегалиева М.А., Ганьшина Е.С., Назарова Д.В. Китай на мировом рынке легкового автомобилестроения // Экономика и предпринимательство. 2026. № 3(188). С. 186–193. DOI 10.34925/EIP.2026.188.3.026
  4. Фасхиев Х.А. Рынок электромобилей – маховик раскрутился // ЭКО. 2020. № 2(548). С. 102–122. DOI 10.30680/ECO0131–7652–2020–2–102–122
  5. Шелеповский Р.Д. Трансформация китайской автомобильной промышленности в 2026 году: доминирование электромобилей, экспортный бум и вызовы глобальной конкуренции // Вестник науки. 2026. Т. 4. № 1(94). С. 1557–1566.
  6. Bjerkan, K., Nørbech, T., Nordtømme, M. (2016). Incentives for promoting Battery Electric Vehicle (BEV) adoption in Norway. Transportation Research Part D: Transport and Environment. Vol. 43. Pp. 169–180. DOI:10.1016/j.trd.2015.12.002
  7. Chou, C., Derdenger, T. (2025). Estimation of Dynamic Discrete Choice Demand Models with Segment Level Data and Continuous Unobserved Heterogeneity: Rethinking EV Subsidies vs. Infrastructure. Marketing Science. DOI: 10.1287/mksc.2024.0860
  8. Correia Sinézio Martins, E., Lépine, J., Corbett, J. (2024). Assessing the effectiveness of financial incentives on electric vehicle adoption in Europe: Multi-period difference-in-difference approach. Transportation Research Part A: Policy and Practice. Vol. 189, 104217. ISSN0965–8564. https://doi.org/10.1016/j.tra.2024.104217. (https://www.sciencedirect.com/science/article/pii/S0965856424002659)
  9. Crawford, K. (2024). Electric vehicle subsidies help the climate and automakers, but at questionable cost to taxpayers. Stanford Report. October 7, 2024. https://news.stanford.edu/stories/2024/10/electric-vehicle-subsidies-help-the-climate-u-s-automakers. (accessed: 20.06.2025).
  10. Dua, R. (2026). China’s vehicle trade-in subsidy: Impact, cost-effectiveness, and barriers to electric vehicle purchase. Energy for Sustainable Development. Vol. 93. https://doi.org/10.1016/j.esd.2026.102021.
  11. Jenn, A., Springel, K., Gopal, A. (2018). Effectiveness of electric vehicle incentives in the United States. Energy Policy. 119. Pp. 349–356. DOI:10.1016/j.retrec.2023.10126.2
  12. Koengkan, M., Fuinhas, J.A., Belucio, M., Alavijeh, N.K., Salehnia, N., Machado, D., Silva, V., Dehdar, F. (2022). The Impact of Battery-Electric Vehicles on Energy Consumption: A Macroeconomic Evidence from 29 European Countries. World Electr. 13. P. 36. https://doi.org/10.3390/wevj1302.
  13. Linn, J. (2021). Who Benefits from EV Subsidies? The Complicating Role of Zero-Emissions Vehicle Standards. UMD Transportation Economics and Policy Blog. April 15. https://blog.umd.edu/transportation/2021/04/15/who-benefits-from-ev-subsidies-the-complic. (accessed: 20.07.2025).
  14. Li, S., Zhu, X., Ma, Y., Zhang, F., Zhou, H. (2022). The Role of Government in the Market for Electric Vehicles: Evidence from China. Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., Vol. 41(2), Pp. 450–485, March. DOI: 10.1002/pam.22362
  15. Schill, Wolf-Peter (2026). Electric mobility in Germany: More speed is possible. DIW Weekly Report, ISSN2568–7697, Deutsches Institut für Wirtschaftsforschung (DIW). Berlin, Vol. 16, Iss. 9. Pp. 67–75. https://doi.org/10.18723/diw_dwr:2026–9-
  16. Wood, J. (2022). Electric vehicles: The 3 main factors holding back sales. World Economic Forum. Oct 26. https://www.weforum.org/stories/2022/10/ev-sales-charging-infrastructure-transport-sector-sustainable/ (accessed: 22.05.2025).