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)
160
478
818
150
379
450173
272
98
105
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2010 2011 2012e 2013e
Japan
Israel
US
Europe
China
45%
171%
363%
95
437
1,186
1,715 Global EV Sales, 2012 (units)
• Source: Bloomberg New Energy Finance
• Source: International Energy Agency
Pilot Cities in China
Adapted from China’s Electric Vehicle Policy and Industry Plan, Xu Changming, State Information Center
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
Policy Comparison: Targets & Plans
China Germany US
Targets
by 2015 500,000 BEVs & PHEVs N/A1 million BEVs by 2015, back off
by 20205 million BEVs & PHEVs by 2020 with $16 billion investment
(EU) 5 million BEVs & PHEVs by 2020 EUR 500 million in R&D funds, 1 million BEVs & PHEVs by 2020
after 2020
N/A 6 million BEVs & PHEVs by 2030, sound electric network in urban area by 2050
N/A
Industry development plan
Special Plan of EV Technology in 12th Five-year Plan
National Electromobility Development Plan.Battery, Electric drive, Smart Grid
American Recovery and Reinvestment Act (ARRA ’09). Batteries
Energy Saving and New Energy Vehicle Industry Development Plan 2012-2020
showcase projects & flagship projects
American Clean Energy and Security Act (ACES ’09). Smart-grid technology
EV Everywhere & Working Place Charging Challenges. charging stations
Policy Comparison: Incentives
China Germany US
Incentive Mechanisms
Purchase subsidies Road tax exemptionTax credit for cars and charging stations
free electricity Company car taxation Free parkingpurchase limit exemption (?)
Special parking places and traffic lanes
Free registration
free installation of charging poles
access to bus lanes Access to HOV lanes
Emission-free Emissions-free
Other measures
Public procurement of taxi and bus fleets
Public procurement planLow-interest bank credit Fleets fuel efficiency
Insurance
Electric Companies Car Dealers
Policy Comparison: Sales
China Germany America
EV Sales in 201212,800 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 BEVs3.3% 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 2015encourage 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 regiondiscourage 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! [email protected]