Adapting zero-emission vehicle incentives for a mainstream market

This research summarizes the past and present status of financial incentive programs for light-, medium-, and heavy-duty ZEVs in leading markets, with a particular focus on the national and subnational governments of the International ZEV Alliance. [...] Financial incentives considered in this report include the following types of policies: • Up-front purchase bonus: The incentive value is deducted from the cost of the vehicle at the point of sale, reducing the purchase price of the vehicle. [...] For these reasons, governments have created incentive programs specifically designed to make ZEVs more accessible and affordable to certain segments of the population underrepresented in the early stages of the ZEV transition. [...] The targets in the United Kingdom’s ZEV mandate for cars are used for this analysis as a proxy for the potential pace of ZEV uptake in a market committed to reaching 100% ZEV sales in 2035. [...] For example, governments can offer incentives exclusively for low-income drivers, or for small fleets of commercial vehicles, to ensure that ZEVs and their benefits flow to those who were left out of the first phases of the ZEV transition.