SHOULD THE STATE INVEST IN ELECTRIC CAR INCENTIVES, AND WHY NOT?

Zoran P. Cekerevac

Abstract


Government subsidies are a powerful economic tool that allows the state to achieve its objectives. When combined with repressive measures, they become even more potent. The central question is whether the incentives are directed toward the right goals and carefully considered. If they are, the benefits can be substantial; otherwise, the consequences could be severe. This paper analyzes state investments in fostering electric vehicles (EVs). To better understand the effects of subsidies, the authors examined them from ecological, economic, and technological perspectives, as well as considerations of justification, timing, distribution of benefits, infrastructural challenges, and the potential creation of dependency on subsidies. The research is conducted based on established research questions regarding whether electric cars are the best option for addressing climate change, whether government incentives are the best and fairest solution for increasing the share of EVs among the total number of cars in various countries and globally, and what the impact of government incentives is in the EV sector. This topic involves multiple fields, which resulted in the creation of specific null and alternative hypotheses. The authors conducted a detailed analysis of the claims about the importance and effectiveness of electric vehicles (EVs) in ecology and economic development. They present results organized into sections that discuss the advantages and disadvantages of government incentives for EVs. The paper concludes with findings and recommendations for a more effective reduction of environmental pollution caused by urban transportation.

Keywords


Electric vehicles (EVs), Government incentives, CO₂ emissions, Sustainable development, Economic growth, Public health, Technological innovations, Infrastructure.

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References


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DOI: http://dx.doi.org/10.12709/mest.13.13.02.04

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