Replication Data for: The Impact of Subsidy on EV adoption: A Case from China

This paper examines the effects of subsidies and exemptions from license plate quotas and driving restrictions on electric vehicle (EV) adoption in China. The analysis leverages spatial and temporal variations in national and local EV subsidies using a panel fixed-effects model based on monthly passenger vehicle registration data from 87 Chinese cities from 2016 to 2019. In addition, this study exploits the differential local exposure to a 2017 shift in the national subsidy policy using a difference-in-differences model. The results show that subsidies have positive but heterogeneous effects on EV adoption. Specifically, subsidies are most effective in first-tier cities, with a 10,000 RMB increase in subsidies being associated with an 18.77% increase in the EV market share. However, within the same city tier, subsidies are less effective in regions with higher GDP per capita and greater shares of government expenditure allocated to education or environmental protection. Additionally, exempting EVs from driving restrictions and license plate quotas is highly effective in promoting EV adoption. For instance, exemptions from license plate quotas increase EV market shares by over 220\%. More specifically, a one percentage point increase in the probability of winning a lottery or a 1,000 RMB increase in the auction price for a conventional vehicle license plate is correlated with a 1.2% to 1.4% increase in EV market share. Results from the difference-in-differences analysis also support the conclusion that the effect of subsidies on EV adoption is positive.