Policy Instruments to Promote Electro-Mobility in the EU28: A Comprehensive Review

Abstract

Despite its environmental benefits, the amount of Electric Vehicles (EVs) in use within the European Union 28 is still very limited. Poor penetration might be explained by certain factors that dissuade potential buyers. To balance these factors and promote electro-mobility, Member States have established incentives to increase demand. However, the various measures are scattered. This paper contributes to fill the gap in the literature by offering an overall view of the main measures. The authors will focus on measures to promote electro-mobility within the EU28 until 2014. After an in-depth and comprehensive review of the relevant measures, the authors conclude that the most important policy instruments to promote EVs are tax and infrastructure measures in addition to financial incentives for purchasing and supporting R&D projects. Regardless of the scarcity of EV registration data, the available information allows us to conclude that higher EV penetration levels appear in countries where the registration tax, the ownership tax, or both taxes have developed a partial green tax by including CO2 emissions in the calculation of the final invoice.