Subsidy on Battery Electric Vehicle and Its Impact on Greenhouse Gas Emission Reduction

Abstract

This study analyzes the impact of the BEV (Battery Electric Vehicle) subsidy policy on the greenhouse gas emission reduction using integrated assessment model. Four policy scenarios are set for the subsidy on BEV purchase, '100% Subsidy', '80% Subsidy', '50% Subsidy' with Sunset on 2030, and 'Fade-out Subsidy' by 2025. One more scenario, '100% Subsidy (No Sunset)', is set to analyze the effect of sunset provision on subsidy. Simulation result can be summarized as followings: First, the electricity charging demand increases during the offpeak period, while it decreases during the peak period. Second, government plan to promote 350 thousand BEVs by 2022 is attainable by '80% Scenario'. Third, each scenario simulation result shows the greenhouse gas emission reduction of 5.09 MtCO 2 , 3.19 MtCO 2 , 1.23 MtCO 2 and 0.42 MtCO 2 , respectively. This is an Open-Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.