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Open Access Publications from the University of California

Price Discrimination and Market Access are not Barriers to Electric Vehicle Adoption by Low-Income Households

Abstract

Policymakers consider alternative fuel vehicles an important element of reducing urban air pollution, lowering carbon emissions and reducing overall petroleum consumption. Federal, state and local governments offer incentives to encourage consumer adoption of these vehicles. But adoption of these vehicles by African-American, Hispanic and low-income consumers has lagged behind the adoption by Asian, White and high-income consumers. As a result, incentives have tended to accrue disproportionately towards high-income households.