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Regional Disparities of Electric Vehicle Marginal Emissions - Evidence from China Market

Tinghan Ye 1 and Hanyi Wang 2
1. Cornell University, Ithaca, USA
2. University of California Saint Diego, La Jolla, USA
Abstract—Recent years have witnessed a surge in Electric Vehicle (EV) sales in China due to a combination of reasons ranging from government incentives in purchasing (subsidies, tax cuts, etc.), lowered costs of EVs, as well as an increase in environmental awareness among Chinese citizens. This paper intends to uncover the regional disparities in EV cars’ marginal emissions in China. Using data from 2010 through 2017, with a focus on carbon dioxide (CO2), we find substantial variation in metric tons of CO2 emissions per EV sold among geographic regions in China (denoted as marginal emissions of EV). We define the term “e_ratio” as the ratio of electricity consumption over electricity generation. A region with a high e_ratio indicates that its electricity generation is larger than its electricity consumption. We find that in provinces with the highest e_ratio, 1% increase in the sales of EVs results in a 0.105% decrease in CO2 emission from the electric power industry (10% significance); 1% increase in the sales of Battery EVs (BEVs) is related to 0.12% decrease in CO2 emissions from the electric power industry (10% significance). In comparison, the effect of additional EV sales on reducing CO2 emission is not significant in provinces with the lowest e_ratio.

Index Terms—China energy market, electric vehicles, marginal emissions, regional heterogeneity

Cite: Tinghan Ye and Hanyi Wang, "Regional Disparities of Electric Vehicle Marginal Emissions - Evidence from China Market," Journal of Advanced Management Science, Vol. 10, No. 2, pp. 36-43, June 2022. doi: 10.18178/joams.10.2.36-43
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