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Using a unique panel dataset on air pollution and car sales from thirty major cities in China across three years, we estimate the impact of air pollution on the adoption of hybrid and electric vehicles. To identify the causal effect, we use three sets of interactive fixed effects to control for a large group of potential confounders and an instrument for the air pollution variable. Our results show that worse air quality leads consumers to purchase more hybrid and electric cars, and the effect is larger in cities with higher incomes. These findings are consistent with predictions from the social preferences theory and point out new directions for strategies to promote the adoption of hybrid and electric cars. [ABSTRACT FROM AUTHOR]

This study explores environmental hypocrisy, wherein individuals or groups profess pro-environmental beliefs but engage in incongruent behaviors. This study investigates whether the adoption of electric and hybrid vehicles (EHVs) in the United States reflects genuine concern for the environment or a form of environmental hypocrisy. It makes use of panel U.S. state-level data to examine how pro-environmental attitudes influence the adoption of hybrid-electric vehicles (HEVs), plug-in hybrid-electric vehicles (PHEVs), and plug-in electric vehicles (PEVs). The study provides evidence of environmental hypocrisy, which is supported by the fact that U.S. states with a higher proportion of survey respondents expressing pro-environmental attitudes exhibit a reduced preference for HEVs. In addition, the adoption of PHEVs and PEVs does not correlate significantly with pro-environmental sentiments; rather, economic considerations emerge as the primary influencing factor. The policy recommendations offered depend on the specific focus of policymakers. For those aiming to boost EHV adoption through any means, the study suggests short-term measures aligning with individual preferences of EHV buyers. However, for those who seek to tackle environmental hypocrisy, it is essential to go beyond individual actions and consider collective and systemic changes that foster a genuine commitment to environmental responsibility over the long term. • Electric and hybrid vehicle adoptions can help reduce environmental emissions. • Study evaluates environmental hypocrisy in electric and hybrid vehicle adoption. • Pro-environmental attitudes correlate negatively with hybrid vehicle adoptions. • Economic, not environmental concerns, drive plug-in vehicle adoptions. • Short-term and long-term policies are suggested. [ABSTRACT FROM AUTHOR]

The transportation sector is the largest contributor to greenhouse gas (GHG) emissions, and electric and hybrid vehicles (EHVs) are among many solutions that can help reduce the consumption of fossil fuels and their resulting GHG emissions. This study addresses the significant and understudied question of how EHVs' adoption influences CO 2 emissions using panel U.S. state-level data over the 2016-2019 period and fixed effects. The study finds no statistically significant relationship between the adoption of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and plug-in electric vehicles (PEVs) and CO 2 emissions. These findings could be explained by adoption rates of HEVs and PHEVs that are too low to manifest statistically significant reductions in CO 2 emissions from the potential displacement of internal-combustion engine vehicles (ICEVs). The findings also align with observations indicating that PEVs, although emission-free, are frequently adopted as supplementary rather than primary vehicles by multi-vehicle households in the U.S. The complexities surrounding EHVs and their impact on CO 2 emissions highlight the importance of further research in understanding the role these vehicles play in the larger context of sustainable transportation as well as more nuanced research into adoption patterns, potential policy interventions, and broader environmental implications. [Display omitted] • Electric and hybrid vehicles can reduce emissions and fight climate change. • The relationship between electric and hybrid vehicles and CO 2 emissions is examined. • U.S. state-level data for the 2016-2019 period are used for the analysis. • There is no evidence that electric and hybrid vehicle adoptions reduce emissions. • Various plausible explanations of the results and recommendations are presented. [ABSTRACT FROM AUTHOR]