Macroeconomic effects of fiscal incentives to promote electric vehicles in Iceland: Implications for government and consumer costs
Post-print (lokagerð höfundar) Iceland as an island country with abundant renewable energy resources has been totally dependent on imported petroleum fuels to meet its transport fuel demand. Transition to electric vehicles (EVs) is of particular interest for Iceland as electricity can be supplied fr...
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Online Access: | https://hdl.handle.net/20.500.11815/2415 https://doi.org/10.1016/j.enpol.2017.12.034 |
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ftopinvisindi:oai:opinvisindi.is:20.500.11815/2415 2023-05-15T16:47:29+02:00 Macroeconomic effects of fiscal incentives to promote electric vehicles in Iceland: Implications for government and consumer costs Shafiei, Ehsan Davidsdottir, Brynhildur Fazeli, Reza Leaver, Jonathan Stefansson, Hlynur Asgeirsson, Eyjolfur Ingi Umhverfis- og auðlindafræði (HÍ) Environment and Natural Resources (UI) Verkfræði- og náttúruvísindasvið (HÍ) School of Engineering and Natural Sciences (UI) Tækni- og verkfræðideild (HR) School of Science and Engineering (UI) Háskóli Íslands University of Iceland Háskólinn í Reykjavík Reykjavik University 2018-03 431-443 https://hdl.handle.net/20.500.11815/2415 https://doi.org/10.1016/j.enpol.2017.12.034 en eng Elsevier BV Energy Policy;114 Shafiei, E., Davidsdottir, B., Fazeli, R., Leaver, J., Stefansson, H., & Asgeirsson, E. I. (2018). Macroeconomic effects of fiscal incentives to promote electric vehicles in Iceland: Implications for government and consumer costs. Energy Policy, 114, 431-443. doi:https://doi.org/10.1016/j.enpol.2017.12.034 0301-4215 https://hdl.handle.net/20.500.11815/2415 Energy Policy doi:10.1016/j.enpol.2017.12.034 info:eu-repo/semantics/embargoedAccess Vehicle choice Vehicle tax Electric vehicle Fiscal incentives Government revenue Consumer cost Endurnýjanleg orka Farartæki Rafbílar Kostnaður info:eu-repo/semantics/article 2018 ftopinvisindi https://doi.org/20.500.11815/2415 https://doi.org/10.1016/j.enpol.2017.12.034 2022-11-18T06:52:06Z Post-print (lokagerð höfundar) Iceland as an island country with abundant renewable energy resources has been totally dependent on imported petroleum fuels to meet its transport fuel demand. Transition to electric vehicles (EVs) is of particular interest for Iceland as electricity can be supplied from low-cost renewable energy resources. To evaluate how the transition to EVs can be achieved through fiscal policy incentives, a dynamic simulation modelling of the integrated energy-transport system with a detailed representation of energy technologies and vehicle fleets is implemented. The model is used for a scenario analysis by incorporating key fiscal parameters including different taxes and subsidies on vehicles and fuels. The fiscal policies to induce EVs, which are applied to both vehicle usage pattern and upfront purchase cost, include petroleum fuel tax levies, vehicle tax exemption, extra fees and subsidies. Five fiscal-induced scenarios to promote EVs, including different subsidy and feebate schemes coupled with fuel tax incentives, are compared with a BAU case. The scenario analysis reveals the impact of different fiscal policy incentives on consumer decision behaviour and the implications of fiscal-induced EV promotion for vehicle ownership costs, government tax revenues/expenditure, and overall economic benefits. The preparation of this paper has been supported by: i) the Norden Top-level Research Initiative sub-programme “Effect Studies and Adaptation to Climate Change” through the Nordic Centre of Excellence for Strategic Adaptation Research (NORD-STAR), project number 36780, ii) The Icelandic research council (RANNIS) through grant number 163464-051, iii) The National energy company (Landsvirkjun), and iv) the Icelandic Road and Coastal Administration (Vegagerdin). Peer Reviewed Article in Journal/Newspaper Iceland Opin vísindi (Iceland) Energy Policy 114 431 443 |
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Open Polar |
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Opin vísindi (Iceland) |
op_collection_id |
ftopinvisindi |
language |
English |
topic |
Vehicle choice Vehicle tax Electric vehicle Fiscal incentives Government revenue Consumer cost Endurnýjanleg orka Farartæki Rafbílar Kostnaður |
spellingShingle |
Vehicle choice Vehicle tax Electric vehicle Fiscal incentives Government revenue Consumer cost Endurnýjanleg orka Farartæki Rafbílar Kostnaður Shafiei, Ehsan Davidsdottir, Brynhildur Fazeli, Reza Leaver, Jonathan Stefansson, Hlynur Asgeirsson, Eyjolfur Ingi Macroeconomic effects of fiscal incentives to promote electric vehicles in Iceland: Implications for government and consumer costs |
topic_facet |
Vehicle choice Vehicle tax Electric vehicle Fiscal incentives Government revenue Consumer cost Endurnýjanleg orka Farartæki Rafbílar Kostnaður |
description |
Post-print (lokagerð höfundar) Iceland as an island country with abundant renewable energy resources has been totally dependent on imported petroleum fuels to meet its transport fuel demand. Transition to electric vehicles (EVs) is of particular interest for Iceland as electricity can be supplied from low-cost renewable energy resources. To evaluate how the transition to EVs can be achieved through fiscal policy incentives, a dynamic simulation modelling of the integrated energy-transport system with a detailed representation of energy technologies and vehicle fleets is implemented. The model is used for a scenario analysis by incorporating key fiscal parameters including different taxes and subsidies on vehicles and fuels. The fiscal policies to induce EVs, which are applied to both vehicle usage pattern and upfront purchase cost, include petroleum fuel tax levies, vehicle tax exemption, extra fees and subsidies. Five fiscal-induced scenarios to promote EVs, including different subsidy and feebate schemes coupled with fuel tax incentives, are compared with a BAU case. The scenario analysis reveals the impact of different fiscal policy incentives on consumer decision behaviour and the implications of fiscal-induced EV promotion for vehicle ownership costs, government tax revenues/expenditure, and overall economic benefits. The preparation of this paper has been supported by: i) the Norden Top-level Research Initiative sub-programme “Effect Studies and Adaptation to Climate Change” through the Nordic Centre of Excellence for Strategic Adaptation Research (NORD-STAR), project number 36780, ii) The Icelandic research council (RANNIS) through grant number 163464-051, iii) The National energy company (Landsvirkjun), and iv) the Icelandic Road and Coastal Administration (Vegagerdin). Peer Reviewed |
author2 |
Umhverfis- og auðlindafræði (HÍ) Environment and Natural Resources (UI) Verkfræði- og náttúruvísindasvið (HÍ) School of Engineering and Natural Sciences (UI) Tækni- og verkfræðideild (HR) School of Science and Engineering (UI) Háskóli Íslands University of Iceland Háskólinn í Reykjavík Reykjavik University |
format |
Article in Journal/Newspaper |
author |
Shafiei, Ehsan Davidsdottir, Brynhildur Fazeli, Reza Leaver, Jonathan Stefansson, Hlynur Asgeirsson, Eyjolfur Ingi |
author_facet |
Shafiei, Ehsan Davidsdottir, Brynhildur Fazeli, Reza Leaver, Jonathan Stefansson, Hlynur Asgeirsson, Eyjolfur Ingi |
author_sort |
Shafiei, Ehsan |
title |
Macroeconomic effects of fiscal incentives to promote electric vehicles in Iceland: Implications for government and consumer costs |
title_short |
Macroeconomic effects of fiscal incentives to promote electric vehicles in Iceland: Implications for government and consumer costs |
title_full |
Macroeconomic effects of fiscal incentives to promote electric vehicles in Iceland: Implications for government and consumer costs |
title_fullStr |
Macroeconomic effects of fiscal incentives to promote electric vehicles in Iceland: Implications for government and consumer costs |
title_full_unstemmed |
Macroeconomic effects of fiscal incentives to promote electric vehicles in Iceland: Implications for government and consumer costs |
title_sort |
macroeconomic effects of fiscal incentives to promote electric vehicles in iceland: implications for government and consumer costs |
publisher |
Elsevier BV |
publishDate |
2018 |
url |
https://hdl.handle.net/20.500.11815/2415 https://doi.org/10.1016/j.enpol.2017.12.034 |
genre |
Iceland |
genre_facet |
Iceland |
op_relation |
Energy Policy;114 Shafiei, E., Davidsdottir, B., Fazeli, R., Leaver, J., Stefansson, H., & Asgeirsson, E. I. (2018). Macroeconomic effects of fiscal incentives to promote electric vehicles in Iceland: Implications for government and consumer costs. Energy Policy, 114, 431-443. doi:https://doi.org/10.1016/j.enpol.2017.12.034 0301-4215 https://hdl.handle.net/20.500.11815/2415 Energy Policy doi:10.1016/j.enpol.2017.12.034 |
op_rights |
info:eu-repo/semantics/embargoedAccess |
op_doi |
https://doi.org/20.500.11815/2415 https://doi.org/10.1016/j.enpol.2017.12.034 |
container_title |
Energy Policy |
container_volume |
114 |
container_start_page |
431 |
op_container_end_page |
443 |
_version_ |
1766037570129494016 |