This document discusses potential policies and measures to increase adoption of electric vehicles (EVs) in Ireland based on behavioral economics principles. Transport currently accounts for 42% of Ireland's energy consumption and 41% of energy-related emissions. While EV grants and tax incentives already exist, adoption rates need to increase significantly to meet climate targets of 1 million EVs by 2030. The document identifies several behavioral barriers like status quo bias and outlines evidence-based policies like congestion charging, total cost of ownership labeling, dealership training, and workplace charging incentives that could help boost EV purchases in Ireland. It concludes by noting some initial implementation steps for 2021.

1. Driving Purchases of Electric
Vehicles in Ireland
A Behavioural Economics Perspective

2. 2
SEAI Behavioural Economics Unit
Karl Purcell
Marek Bohacek Andrew O'Callaghan
Using the latest evidence from Behavioural Science and
Economics to encourage citizens, homeowners and
businesses to change their energy behaviour.

3. Behavioural Insights for Policy Series
3 www.seai.ie
• Behavioural insights
deliver the highest level
of impact when applied
throughout the entire
policy lifecycle.
• Applying insights at the
problem identification
and policy analysis
stages of policy
formation.

4. This report is:
• An outline of relevant barriers to EV
adoption.
• An indication of additional measures that
may support efforts to achieve EV
targets, based on available evidence.
Aims & Scope of Report
This report is not:
• An economic feasibility study of the
suggested policies.
• A review of fiscal policies, such as carbon
tax, motor tax, etc.
4 www.seai.ie

5. • Transport is the largest energy-consuming
sector
• 42% share of final energy consumption.
• 41% of energy related emissions.
• Electrification of transport is a key policy of
the Climate Action Plan
• ~1 million EVs by 2030
Transport Energy Use & Emissions
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Transport Emissions 1990 - 2019

6. Existing Policies to Incentivise EVs
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EV
Policies
Grant of up
to €5000
VRT relief
until end of
2021 for
Battey EVs
Lowest
motor tax:
€120
Home
Charger
Grant of up
to €600
2030 ICEV
ban?
Carbon Tax
Variable
motorway
toll
discounts

7. • Strong growth, from a low baseline.
• Since 2010, EV sales have been
more than doubling each year.
• Electric vehicles made up 3.0% of
new private cars in 2019, but just
0.3% of the total stock of private
cars.
Progress to Date
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0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2008 2010 2012 2014 2016 2018 2020
Irish EV Registrations
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Cumulative Sales Growth
Rate
EV Annual Growth Rate
ICEV Annual Growth Rate

8. Gap to Target
• Step-change in EV purchase rates is required to
meet the Climate Action Plan EV target.
• Generous incentives already exist.
• Additional policies will likely be required to
complement existing measures.
• Aims of report:
• Determine relevant barriers to EV adoption.
• Propose appropriate behaviourally-informed
policy solutions based on available evidence.
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9. Why is uptake so low?
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Cost
Technology
Behavioural
Factors
Dealership
Experience

10. • EVs are still largely produced and marketed
towards middle and higher income earners.
• Few offerings at entry levels.
• Cost of batteries continues to fall
• Total cost of ownership comparisons are
often favourable for EVs over ICEV
alternatives.
• Communicating this is key
Financial Barriers
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0
200
400
600
800
1000
1200
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Lithium Ion Battery Prices (€/kWh)
Source: Kittner et al (2020)

11. • Remains a concern despite technological improvements.
• Average range of 2021 BEVs: ~380km.
• Average car journey in Ireland: ~15km.
• Sizeable market share (36%) lack of access to off-street parking for charging
purposes.
Technological: Range & Charging Infrastructure
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12. Behavioural Barriers
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Hyperbolic discounting
Status quo bias
Social norms
Choice overload
Information problems

13. • Studies of consumer experience indicate
unfavourable conditions for EV uptake in some
scenarios.
• Matthews et al. (2017), Zarazua de
Rubens et al. (2018).
• Lack of incentive for dealer to sell EVs.
Longer sales times.
Less post-sale revenue from servicing.
Low financial incentive compared to ICEVs.
• Limited EV-specific knowledge.
• Hassle to install charge points.
• Evidence gap for Irish context.
Dealership Experience
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14. Potential Measures
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16. • Relatively cheap to drive an ICEV in Ireland, compared to
other European countries.
• Successful precedent in London, Milan, Stockholm, and
Singapore.
• Increase in low-emitting vehicle purchases following
implementation.
• +10-12%.
• Stockholm: Whitehead et al (2014), Borjessen et al
(2012)
• London: Morton et al (2017), Ozaki & Sevastyanova
(2011)
• Wider benefits:
• Air quality (-14% CO2, -9% NOX)
• Reduced congestion (-18%)
• Public transport use (+12%)
Emissions Linked Congestion Charging
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17. Comparison Tools & Total Cost of Ownership Labelling
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Source: carboncounter.com,
by the MIT Trancik Lab

18. • Increasing the salience of long terms costs can mitigate the impact of hyperbolic discounting.
• Maximise the key selling point of EVs.
• Lower running costs and maintenance costs.
Comparison Tools & Total Cost of Ownership Labelling
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Source: PG&E, www.ev.pge.com

19. • Structured training can provide dealers with the
expertise to advance EV sales by effectively
communicating:
• Running cost savings
• Range capabilities
• Grant availability
• Tax incentives
• Certification and award systems can increase
incentives to promote sales and improve corporate
social responsibility status.
• Lack of primary research.
Dealership Training & Awards
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20. • Duel purpose: indicator for “EV-only” privileges
and enabler of virtue signalling.
• Introduced in UK in 2020.
• Evidence from other domains - Green credentials
can increase consumer preferences.
Green Licence Plates & Bus Lane Access
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• Implemented in Norway, Stockholm, California,
and Ontario.
• Primary purchase motivator for 20% of
Norwegians, 43% of Californians.
• Increased willingness to pay for EVs Stockholm
residents by €3200.
• Conflict with modal shift policies?

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Test Drive Initiatives
• Direct prior experience positively predicts investment likelihood and evaluation of key vehicle
characteristics.
• SEAI (2019), Schmalfuß et al (2017)
• Real world experience diminishes range anxiety.
• McKinsey & Company (2017), Rauh et al (2015)
• SEAI Energy Show – a successful precedent.
• Roadshows.
• Plug’n Drive EV Roadshow - Ontario
• Ride and Drive – New Zealand

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Workplace Charger Incentives
• Particularly attractive for those with long commutes or without
direct access to off-street parking at home.
• Observations of positive correlation between charger
presence of staff EV ownership rates at workplaces.
• Olexsak (2014), Plug-in EV Collaborative (2013)
• Quebec – 50% funding for installation.
• UK - £300 rebate.
• France – 40% funding for installation.

23. • SEAI Compare & Calculate Tool 2021
• EV workplace charger grants 2021
• Test Drive – primary call-to-action in SEAI
marketing
• Opportunity for dealers
• https://www.seai.ie/technologies/electric-
vehicles/
Implementation – 2021 and beyond…
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