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Research Projects

STATUS: Complete YEAR: 2019 TOPIC AREA: Sustainability, energy, and health Transportation planning, policy, and finance CENTER: PSR

Assessing Effectiveness of Financing Subsidies on Clean Vehicle Adoption by Low- and Moderate-income Consumers

Project Summary

Project number: PSR-19-61
Funding source: Caltrans
Contract number: 65A0674 TO 030
Funding amount: $107,549
Performance period: 4/15/2020 to 4/15/2021

Project description

Clean vehicle adoption is an integral part of strategies in California and other jurisdictions to decarbonize transportation and mitigate climate change via reducing greenhouse gas emissions. However, cost barriers have thus far largely limited adoption of these technologies to more affluent households. Although California has instituted subsidy-based programs to reduce the effective cost of clean vehicles, financing policies and the performance of clean vehicle adoption incentives among low-moderate income households have been historically understudied. In their 2021 study, Sheldon, DeShazo, & Pierce use choice experiment data to create a conditional logit model of low-moderate income consumer vehicle preferences, which they then use to predict the performance of five different policy scenarios with respect to clean vehicle adoption among this demographic. Their results suggest that financing policies are significantly more cost-effective than subsidies at promoting clean vehicle adoption by low-moderate income households in California.


Gregory Pierce
Adjunct Assistant Professor of Urban Planning
3250 Public Affairs Building - Box 951656
Los Angeles, CA 90095
United States
[email protected]