Study finds more financial benefit for lower-income EV buyers 

A new study on electrical vehicles (EV) equity issued from Resources for the Future (RFF) has found that the lowering costs of used EVs over the next ten years will increase lower-income EV adoption.

It also found that by 2029, EVs will reach upfront price parity with the average vehicle purchased in that demographic.

The working paper, Balancing Equity and Effectiveness for Electric Vehicle Subsidies, also revealed that savings from EVs relative to income are significantly higher for low-income households, non-White households, and households in areas with higher levels of pollution.

Lower-income buyers reap more from subsidies, too

Working paper author Joshua Linn, an associate professor in the Department of Agricultural and Resource Economics at the University of Maryland and fellow at RFF, found that consumers who buy less expensive EV models capture the majority of government subsidies for EVs, and that subsidies geared toward the lower income market are 40 percent more cost-effective than subsidies aimed at higher income brackets.

More specifically, of all forms of subsidies, the income-based subsidy carries the most benefit for these households.