Electric vehicles are promising options to save fuel and reduce carbon emissions. This study estimates the effect of incentives on the sales of electric vehicles (EVs) for 50 cities in China over January 2016 to December 2019. The findings suggest that a 1 per cent increase in EV purchase subsidies on average lead to an increase in EV sales by 0.6 per cent. No driving restrictions exemption for EVs are also found to encourage the adoption of EVs.
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