Table 3 Exemplary consequences of two market-based policy measures for the Kaya identity factors

From: The behavioral dimension of transport decarbonization

 

Fuel Choice

Technology Choice

Travel Behavior

Carbon tax

Depending on the size of the tax, diversion from petroleum-fueled vehicles to EVs

Uptake of more energy-efficient vehicles

Decline in petroleum-fueled automobile travel demand due to higher fuel prices and a shift to public transport

Subsidy for EVs

Enhanced adoption of EVs

Electric technologies, such as electric drivetrains, can be much more efficient than internal combustion engines, because they aren’t restricted by the same physical limits.

Reduced marginal cost of EVs may cause an increase in EV driving (rebound effect)