New plug-in electric vehicle sales : investigating whether the government’s monetary incentive is the sole driver of sales in Malta

Abstract

In response to climate change, the European Union (EU) has implemented the ‘European Green Deal’. This deal set goals for its member states in order to achieve net carbon neutrality by 2050, along with a more immediate target of reducing greenhouse gas (GHG) emissions by 55% by 2030 compared to the levels in 1990. These targets are part of the ‘Fit for 55’ package. A potential answer to the challenge of decreasing the reliance on fossil fuels, and therefore lowering CO2 emissions, are electric vehicles (EVs). Since these vehicles run on an electric motor, they produce no tailpipe emissions. The shift from internal combustion engine vehicles (ICEVs) to EVs has brought major change in the transportation sector. The adoption of these vehicles has been challenging mainly due to their high price and other factors explored in this study. In response, policymakers have adopted incentives to offset these shortcomings and help boost the EV market. The most notable incentive relates to the monetary grant that the Maltese government allocates to those who purchase an EV. This study aims to answer three research questions. The first seeks to determine whether the monetary grant is the sole motivator for the purchase of these vehicles. Secondly, this study questions alternative purchase motivators, which can make EVs more appealing to consumers and potentially increase sales. Lastly, the third research question pursues to determine if and how different grants for battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), would increase the number of people opting for a BEV, being the ideal and greener option. Throughout this study, a qualitative research method was employed through Thematic Analysis (Attride-Stirling, 2001). This approach is considered to be effective in providing a comprehensive understanding of personal beliefs and experiences. The sample size was 30 participants, all of whom were owners of either a BEV or a PHEV, also referred to collectively as plug-in electric vehicles (PEVs). The participants took part in a semi-structured in-depth interview which was then transcribed verbatim, and their findings were analysed thematically. Following this process, three global themes were established; ‘Purchase Motivators’, ‘Additional Incentives’ and ‘BEV & PHEV Grants’. The global themes were supported by 12 organising themes; ‘Monetary Incentives’, ‘Vehicle Characteristics’, Running Costs’, ‘Environmental’, ‘Priority’, ‘Education’, ‘Monetary’, ‘Selling Price’, ‘Infrastructure’, ‘Grant Process’, ‘Equivalent Grants’ and ‘Distinct Grants’. These organising themes were sustained by 15 basic themes. Through the emerging of themes, participants express that although the monetary government incentive is the primary purchase motivator, other contributing factors influenced their purchase. These included characteristics related to the vehicle features, fuel and running costs of a PEV and their concern towards the environment. It was also discovered that alternative incentives may be adopted to entice more people to purchase PEVs. These included incentives that were already in place but require improvements. The potential incentives included; the access to designated parking spaces, marketing and educational campaigns geared towards informing the public, incentives targeting electricity rates and the charging wall box, the need to make PEVs more price competitive, a robust public charging infrastructure to support the increase in demand and a more efficient grant process. The last theme related to different grants when purchasing a BEV or a PHEV. Participants agreed that an identical grant is unjust and is seen as a misallocation of funds by the government. Moreover, having distinct grants demonstrates a level of prioritisation towards the adoption of BEVs, which are the ideal eco-friendly option in view of meeting the set environmental targets