UCLA Luskin Center for Innovation

California maintains ambitious clean vehicle targets, including a mandate that all passenger vehicles sold in the state be zero-emission by 2035. This paper examines the distributional impacts of six light-duty clean vehicle incentive programs, especially for equity. The authors find that of the more than $1.9 billion allocated, only about $311 million was distributed to households in disadvantaged communities (DACs). The Clean Vehicle Rebate Project and other statewide programs are heavily skewed towards benefitting non-DACs (87.9%). Clean Cars for All and other regional programs have been more effective at delivering funds to DACs (51%). Between 2015 and 2021, nearly every region of the state has increased clean vehicle registration rates, though rural areas and the Los Angeles core remain persistently low. In addition to spatial inequalities, there are disproportionately low clean vehicle registrations among lower-income areas. By projecting current and optimistic rates of adoption to 2035, the researchers found that California is unlikely to reach its goals, and marginalized communities will continue to be far behind in their adoption rates. Policy recommendations include: 1) allocate more funding for equity-focused clean vehicle programs, 2) be creative in maximizing used vehicle inventory, and 3) focus more on delivering rather than merely advertising the benefits of one-stop shops for incentive access.