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