Effects of electric vehicle demonstration and promotion policy on air pollution: Evidence from China

Abstract

The escalating problem of air pollution has recently attracted global attention. The use of electric vehicles (EVs) has emerged as a key strategy for mitigating air pollution in the transportation sector. This study uses the difference-in-differences method to examine the influence and underlying mechanisms of China's Electric Vehicle Demonstration and Promotion (EVDP) policy on air pollution. The results indicate that EVDP policy implementation significantly reduces urban air pollution. The EVDP policy is associated with a 3.1% reduction in fine particulate matter (PM_2.5) emissions, which is equivalent to a reduction of 0.28–1.12% in mortality risk and of 175.1 billion yuan in government expenditure on pollution control. The emission reduction effect of the EVDP policy primarily manifests in cities in the southern region and with high electricity availability, exhibiting insensitivity to variations in city size. The EVDP policy reduces urban air pollution through technological innovation and corporate environmental, social, and governance responsibility. Moreover, the reduced air pollution driven by the EVDP policy can potentially mitigate health inequalities across population groups. These findings provide a foundation for advancing energy-saving development and EV demonstration and promotion in China, thereby promoting high-quality green urban development.