EVs hurdle, countries/jurisdictions all over the world have

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EVs have less
air and noise pollution, emit less GHG emissions and have lower user costs per
km compared to ICEVs, and can also lead to an increase in the share of
renewable energy in a country/jurisdiction 9.
EVs are also more efficient than ICEVs because of their electric powertrain

As a result,
EVs not only contribute to the reduction in GHG emissions from transportation
sector and can be used as a promising solution to address climate change
issues, they can also be used to address the issue of local air pollution. Electrification
of transportation sector will also decrease the primary consumption because of
the increase in the well-to-wheel efficiency of an electric powertrain system
compared to an ICE system 6.

the transportation sector means there will be a lower need for oil products. The
electricity needed to fuel the alternative fuel vehicles may be generated from
different resources. This means that electrifying the transportation sector
reduces the dependency for oil products and covers the need for oil products
with other resources. So as the primary energy needed for transportation sector
can be supplied from different energy sources, energy supply security and
flexibility will increase 6.

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Although there is a worldwide
agreement on the need for decreasing the amount of CO2 emission reduction,
the development of low-emission technologies has several barriers the most
important of which is their higher cost compared to conventional technologies. Additional
to higher cost, EVs also face the problem of range anxiety for customers.

To overcome
this hurdle, countries/jurisdictions all over the world have established programs to
support the widespread deployment of EVs and development of their
charging/refueling infrastructure. But while we have observed an increase in
the adoption of EVs in recent years, there is still a need for policies for
promoting further deployment of EVs. These policies should be presented in
different forms such as financial incentives, support for technology progress
and incentives for charging/refueling infrastructure 10.

Although EVs generally have lower
variable cost than ICEVs, this can’t cover the issue of higher upfront cost 9. Allocating incentives for purchase
of electric vehicles tries to address the higher cost challenge. Developing
sufficient charging and refueling infrastructure is also aimed at addressing
the anxiety range challenge. Other factor such as lack of knowledge about new
technologies may also contribute to slow deployment of EVs, however, we are not
focusing on these social factor in this work as they are found to be of a lower
degree of importance compared to technological issues 15.

It is generally accepted that the
widespread deployment of electric vehicles needs fiscal incentives at least in
the early stages of adoption. These fiscal incentives and regulations may be
provided in different forms such as purchase subsidy, emission regulation and R

The important
point in analysis of the policies for BEVs, PHEVs and FCVs is that the effect
of support policies for each of these technologies is not limited to that
technology and will also affect the deployment of others. Harrison and Thiel 11 state
that maturity of FCVs may be prohibited if a strong policy for chargeable
electric vehicles is in place.


Review on support policies

In this
work, we are reviewing subsidies for both infrastructure and vehicle deployment
for countries that have incentives for BEVs and PHEVs as well as FCVs. The
incentives considered in this work are purchase subsidies for BEVs, PHEVs, and
FCVs. Regarding the charging/refueling infrastructure, we are reviewing how
local governments support and contribute to the development of the
charging/refueling infrastructure.

There are a considerable number of countries which have
support policies for deployment of EVs and PHEVs but in this work we are
considering countries that have incentives and support policy for both EV/PHEVs
and FCVs. The countries/jurisdictions considered in this work are from three
geographical areas: East Asia, Europe, and North America.

The 10 countries/jurisdictions investigated
in this work are as follows:

East Asia: Japan, Republic
of Korea, China

Europe: Germany, France,
UK, Norway, Denmark, Sweden

North America: state of


Government of
Japan provides support to early adopters of FCVs including Toyota Mirai and, in
the future, Honda FCV Concept with 3 million yen1
grant per car (approximately 45% the sale cost of the vehicle) 18.
Based on the new subsidy scheme in Japan introduced in 2016, government set a
maximum subsidy of JPY 850,000 for purchase of vehicles. This program provides
higher subsidies than previous policies. Based on this support policy, the
purchase incentive for a Nissan Leaf with a 30-kWh battery, amounts to JPY
330,000 19.

The Japanese
government also provides subsidies for the construction of HRSs 18.
Table 1
shows the support for the development of HRSs sponsored by Ministry of Economy,
Trade and Industry for 2017 fiscal year 20.

1. Support for development
of HRS by Japan’s Ministry of Economy, Trade and Industry for 2017 fiscal year 20

Exchange rate for Japanese Yen in December 6th, 2017 is 1 JPY ~ 0.01

Categories: Industry


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