Electric Vehicle Adoption in Sweden and the Impact of Local Policy Instruments

Abstract

A transition towards a higher share of electric vehicles has the potential to significantly reduce greenhouse gas emissions. The adoption rate of electric vehicles in Sweden is however relatively slow and varies substantially across municipalities. This thesis empirically examines the impact of local policy instruments designed to promote the adoption of electric vehicles. We use panel data between 2010 and 2016 to estimate the effect of local policy instruments on the share of newly registered battery electric vehicles in Swedish municipalities. We find that an increased number of public charging points increases the adoption rate, especially in urban municipalities. The results further suggest that public procurement of battery electric vehicles has the potential to be an effective policy instrument. Finally, we find that by adjusting policy instruments to the specific characteristics of municipalities and making them visible to the public, their effectiveness can be increased.