Date of Award

Summer 8-2-2024

Document Type

Thesis

Degree Name

Master of Arts (MA)

Department

Economics

First Advisor

Partha Deb

Second Advisor

Karna Basu

Academic Program Adviser

Karna Basu

Abstract

Countries, states, and municipalities are working to reduce greenhouse gas emissions in the transportation sector by leveraging policy incentives to promote electric vehicle (EV) adoption. I study the efficacy of state-level time-of-purchase rebate incentives in the United States between 2016 and 2022, and employ a generalized difference-in-difference two-way fixed effects model that enables causal inference. I find that EV rebate incentives cause an increase of 1 EV per 1,000 vehicles. EV rebate incentives also cause a decrease in gasoline powered vehicles by 3 vehicles per 1,000, and a decrease in diesel powered vehicles by 1 per 1,000. EV rebate incentives are effective at increasing EV adoption, and EVs are substitutes for gasoline and diesel vehicles.

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