Recharging China’s
Electric Vehicle Policy
Tao Wang | Oct 30, 2013
Resident Scholar, Energy and Climate Program
About Carnegie-Tsinghua Center
• The Carnegie Endowment was founded in 1910, and established the
Carnegie-Tsinghua Center in 2010 with the International Relations dept. of
Tsinghua University
• “The Global Think Tank” is headquartered in D.C., with five centers in three
continents, and an Indian Center coming in 2013
• A private, nonprofit organization dedicated to advancing cooperation
between nations. Its work is nonpartisan and dedicated to achieving
practical results
• Energy and Climate Program aims to 1) enhance mutual understanding; 2)
promote cooperation; 3) provide independent and constructive policy
analysis for energy and climate policies
Outline
• International efforts on Electric Vehicle development
• Policy comparison among China, Germany and the US
• Lessons learned in pilot cities
• Policy recommendations
Benefits from EV Development
in China
• Energy security
• Environmental Protection
• Climate Change Mitigation
• Industrial Growth (leapfrogging in automobile industry)
Global Attention to Electric
Vehicles (EVs)
Total Investment in Public EV
Infrastructure, 2010-13e ($m)
1,800
45%
1,600
Global EV Sales, 2012 (units)
1,715
105
272
1,400
1,186
1,200
171%
1,000
98
173
450
Israel
800
US
379
600
363%
400
200
•
Europe
437
818
95
150
160
478
2010
2011
2012e
0
Japan
China
2013e
Source: Bloomberg New Energy
Finance
•
Source: International Energy Agency
Pilot Cities in China
2010年6月，6个私人补贴试点城市：
北京、深圳、上海、杭州、合肥、长春
6个私人补贴试点城市
Adapted from China’s Electric Vehicle Policy and Industry Plan, Xu Changming, State
Information Center
Policy Comparison:
Targets & Plans
China
Germany
US
by 2015
500,000 BEVs & PHEVs
N/A
1 million BEVs by 2015, back
off
by 2020
(EU) 5 million BEVs & PHEVs by
5 million BEVs & PHEVs
2020 EUR 500 million in R&D
by 2020 with $16 billion
funds, 1 million BEVs & PHEVs
investment
by 2020
Targets
N/A
after
2020
6 million BEVs & PHEVs by 2030,
sound electric network in urban N/A
area by 2050
National
Electromobility
Special
Plan
of
EV
American
Recovery
and
Development Plan.
Technology in 12th FiveReinvestment Act (ARRA ’09).
Battery, Electric drive, Smart
year Plan
Batteries
Grid
Industry
development plan
Energy Saving and New
Energy Vehicle Industry showcase
Development Plan 2012- projects
2020
projects
&
flagship
American Clean Energy and
Security Act (ACES ’09).
Smart-grid technology
EV Everywhere & Working
Place Charging Challenges.
charging stations
Policy Comparison:
Incentives
Incentive
Mechanisms
Other
measures
China
Germany
US
Purchase subsidies
Road tax exemption
Tax credit for cars and
charging stations
free electricity
Company car taxation
purchase limit exemption Special parking places and
traffic lanes
（？）
free installation of charging
access to bus lanes
poles
Emission-free
Public procurement plan
Low-interest bank credit
Public procurement of taxi
and bus fleets
Free parking
Free registration
Access to HOV lanes
Emissions-free
Fleets fuel efficiency
Insurance
Electric Companies
Car Dealers
Policy Comparison:
Sales
China
Germany
America
EV Sales in 2012
12,800 BEVs & PHEVs
(11,400 BEVs)
Less than 3,000 BEVs
& PHEVs
53,000
BEVs
473,000 PHEVs
Total Car Sales
19.3 million
6 million
14.5 million
Percentage
0.06%
less than 0.1%
0.3% for BEVs
3.3% for PHEVs
&
Lessons Learned in Pilot Cities
• Lagged innovation results in an innovation capacity and technology
gap
• Insufficient impetus for Chinese automakers to focus on electric
vehicles
• Lack of infrastructure and incentives to use electric vehicles instead
of conventional ones; purchase subsidies not in use
• Relying too much on public finance support; lack of a sound
business model
• The government will provide subsidies for public transportation and
official vehicles.
• These subsidies will decrease by about 10% in 2014, and then 20%
in 2015encourage automakers to reduce prices of these vehicles
in the longer term
• In addition, 30% of new vehicles for municipal fleets must be electric.
• Importantly, 30% of these newly subsidized purchases must be
transacted with companies outside of the local regiondiscourage
protectionism
Policy Recommendations:
Open up the electric vehicle market to leading international
automakers
Policy Recommendations:
Promote electric vehicle use in commercial operations with priority
Policy Recommendations:
Create an environment that encourages electric vehicle use
Average Annual Total Cost of Ownership
Policy Recommendations:
Develop a self-sustaining business model
Thank you!
twang@ceip.org