A0799
Title: Does the promotion of EV in the US and China improve air quality: Evidence from causal inference using factor models
Authors: Yi Wu - Tohoku University (Japan) [presenting]
Yasumasa Matsuda - Tohoku University (Japan)
Runyu Dai - Tohoku University (Japan)
Abstract: Climate change and worsening air pollution have prompted new strategies to reduce fossil fuel consumption in the transportation sector. A key component of the global shift toward green energy is the large-scale adoption of electric vehicles (EVs) to replace conventional internal combustion engine vehicles. Given that mitigating air pollution is a highly resource-intensive and long-term challenge, governments around the world have increasingly relied on collaborative programs that combine policy incentives with societal support to accelerate EV adoption and, in turn, improve air quality. The effects of collaborative programs are comparatively evaluated on local air quality in the United States and China. Using a 48-month panel dataset covering all states in the contiguous United States and all provinces in mainland China, recently developed causal inference techniques are employed for panel data that incorporate latent factor structures, enabling the accountancy of unobserved common shocks that vary across regions and over time. Findings indicate that the collaborative programs have led to significant improvements in air quality in treated areas. Moreover, the local density of charging infrastructure and average income levels are positively associated with the effectiveness of policy incentives.
