Description:
We investigate the pass-through of electric vehicle (EV) subsidies in 13 countries that account for 95 percent of global EV sales from 2013 to 2020. Our results indicate high pass-through rates of 70-80 percent on average. Pass-through is highest for global firms that sell the same EV models across multiple countries, consistent with uniform pricing by these firms, as well as avoidance of third-party arbitrage. We find suggestive evidence that pass-through is higher for tax incentives than for direct consumer subsidies.