Working Paper: NBER ID: w29913
Authors: Anders Anderson; Harrison Hong
Abstract: We evaluate a large-scale Swedish electric bike (E-bike) subsidy program in 2018, similar to those implemented in many other countries. We combine administrative, insurance and survey data to address challenges of welfare analyses such as non-additionality. We find (1) complete pass through of the average $494 subsidy to consumers, (2) a near doubling of E-bikes sold but one-third of the adopters are nonadditional, and (3) a savings of 1.3 tons of carbon emissions during the life of the E-bike. At a cost of $589 per ton, the program is an expensive way to reduce carbon emissions from driving.
Keywords: electric bikes; subsidy program; carbon emissions; welfare analysis; Sweden
JEL Codes: H20; H21; H22; H23; R4; R48; R49
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Subsidy (H20) | Ebike Sales (R48) |
| Ebike Adoption (R48) | Car Usage (R48) |
| Ebike Adoption (R48) | Carbon Emissions (Q54) |
| Subsidy (H20) | Consumers (D19) |