Job Market Paper [Link]:  The Impact of Electric Vehicle Subsidies on Sales, Internal Combustion Engine Vehicle Demand, and CO₂ Emissions in South Korea

This study investigates the role of EV subsidies, differentiated by battery size and power efficiency, in shaping consumer behavior and decarbonization outcomes. This study suggests that a $1,000 increase in EV subsidies raises EV sales by 5%. The number of EV chargers does not significantly affect EV demand in South Korea. This finding contrasts with evidence from other countries, such as Norway and the United States, where the impact of charging infrastructure on EV demand is often emphasized. This provides evidence on the role of subsidies in a context where charging constraints are relatively minor, such as in South Korea. Furthermore, this study estimates the cost of abatement at $79 per ton of CO₂ under the EV subsidy policy. This is lower than the cost of abatement under a counterfactual policy scenario in which subsidies are applied uniformly across EV models, where the cost of abatement is estimated at $82 per ton.