Public Policies for Hybrid-Electric Vehicles: The Impact of Government Incentives on Consumer Adoption

Abstract

This dissertation examines the outcomes and effectiveness of public policies designed to promote the adoption of hybrid-electric vehicles (HEVs). As a primary methodology, I employ cross-sectional analysis of hybrid registration data over time for U.S. states and Virginia municipalities to examine the relationship between hybrid adoption and a variety of socioeconomic and policy variables. I also compare hybrid adoption patterns over time to the U.S. average for specific states that have changed incentive policies, to determine whether these policy changes are consistent with significant changes in adoption patterns. The results of these analyses suggest a strong relationship between gasoline prices and hybrid adoption, but a much weaker relationship between incentive policies and hybrid adoption. Incentives that allow hybrids to access High Occupancy Vehicle (HOV) lanes with only one occupant may also be effective in promoting adoption, but only under specific circumstances and with the potential for significant unintended consequences.