EVs have lessair and noise pollution, emit less GHG emissions and have lower user costs perkm compared to ICEVs, and can also lead to an increase in the share ofrenewable energy in a country/jurisdiction 9.EVs are also more efficient than ICEVs because of their electric powertrainsystem. As a result,EVs not only contribute to the reduction in GHG emissions from transportationsector and can be used as a promising solution to address climate changeissues, they can also be used to address the issue of local air pollution. Electrificationof transportation sector will also decrease the primary consumption because ofthe increase in the well-to-wheel efficiency of an electric powertrain systemcompared to an ICE system 6.Electrifyingthe transportation sector means there will be a lower need for oil products.
Theelectricity needed to fuel the alternative fuel vehicles may be generated fromdifferent resources. This means that electrifying the transportation sectorreduces the dependency for oil products and covers the need for oil productswith other resources. So as the primary energy needed for transportation sectorcan be supplied from different energy sources, energy supply security andflexibility will increase 6.Although there is a worldwideagreement on the need for decreasing the amount of CO2 emission reduction,the development of low-emission technologies has several barriers the mostimportant of which is their higher cost compared to conventional technologies.
Additionalto higher cost, EVs also face the problem of range anxiety for customers.To overcomethis hurdle, countries/jurisdictions all over the world have established programs tosupport the widespread deployment of EVs and development of theircharging/refueling infrastructure. But while we have observed an increase inthe adoption of EVs in recent years, there is still a need for policies forpromoting further deployment of EVs. These policies should be presented indifferent forms such as financial incentives, support for technology progressand incentives for charging/refueling infrastructure 10. Although EVs generally have lowervariable cost than ICEVs, this can’t cover the issue of higher upfront cost 9. Allocating incentives for purchaseof electric vehicles tries to address the higher cost challenge.
Developingsufficient charging and refueling infrastructure is also aimed at addressingthe anxiety range challenge. Other factor such as lack of knowledge about newtechnologies may also contribute to slow deployment of EVs, however, we are notfocusing on these social factor in this work as they are found to be of a lowerdegree of importance compared to technological issues 15. It is generally accepted that thewidespread deployment of electric vehicles needs fiscal incentives at least inthe early stages of adoption. These fiscal incentives and regulations may beprovided in different forms such as purchase subsidy, emission regulation and Rfunds.The importantpoint in analysis of the policies for BEVs, PHEVs and FCVs is that the effectof support policies for each of these technologies is not limited to thattechnology and will also affect the deployment of others. Harrison and Thiel 11 statethat maturity of FCVs may be prohibited if a strong policy for chargeableelectric vehicles is in place. 1 Review on support policiesIn thiswork, we are reviewing subsidies for both infrastructure and vehicle deploymentfor countries that have incentives for BEVs and PHEVs as well as FCVs.
Theincentives considered in this work are purchase subsidies for BEVs, PHEVs, andFCVs. Regarding the charging/refueling infrastructure, we are reviewing howlocal governments support and contribute to the development of thecharging/refueling infrastructure.There are a considerable number of countries which havesupport policies for deployment of EVs and PHEVs but in this work we areconsidering countries that have incentives and support policy for both EV/PHEVsand FCVs. The countries/jurisdictions considered in this work are from threegeographical areas: East Asia, Europe, and North America. The 10 countries/jurisdictions investigatedin this work are as follows:· East Asia: Japan, Republicof Korea, China· Europe: Germany, France,UK, Norway, Denmark, Sweden· North America: state ofCalifornia1.1 JapanGovernment ofJapan provides support to early adopters of FCVs including Toyota Mirai and, inthe future, Honda FCV Concept with 3 million yen1grant per car (approximately 45% the sale cost of the vehicle) 18.
Based on the new subsidy scheme in Japan introduced in 2016, government set amaximum subsidy of JPY 850,000 for purchase of vehicles. This program provideshigher subsidies than previous policies. Based on this support policy, thepurchase incentive for a Nissan Leaf with a 30-kWh battery, amounts to JPY330,000 19.1Exchange rate for Japanese Yen in December 6th, 2017 is 1 JPY ~ 0.01USD