Are Residents Willing to Pay for Electric Cars? An Evolutionary Game Analysis of Electric Vehicle Promotion in Macao

Abstract

This study uses an evolutionary game model to analyze the interplay between Macao residents’ willingness to purchase electric vehicles (EVs) and the government’s promotion strategies. It assesses the effectiveness of incentives like tax exemptions and price reductions. Despite these initiatives, challenges such as high initial costs, limited vehicle range, and long charging times continue to hinder the widespread adoption of EVs in Macao. Government subsidies increase the appeal of EV purchases, but if not managed carefully, they risk creating dependency. Simulation analysis shows that an active purchasing strategy by Macao residents can stabilize the model’s development. However, to achieve wider market penetration and environmental goals, this study highlights the need for the government to align subsidies with market dynamics and for residents to increase their environmental awareness. This study outlines actionable strategies for policy-makers, emphasizing the importance of infrastructure improvements and financial incentives in promoting electric mobility. Policy-makers should focus on expanding the network of charging stations to enhance the convenience and viability of EV usage. Additionally, implementing targeted financial incentives, such as subsidies or tax breaks, can lower the cost barrier for potential EV buyers, thereby increasing the attractiveness and adoption of electric vehicles.