Abstract for:Simulating the impact of fiscal incentives on electro-mobility transition and prospects for Icelandic energy-economic system
To evaluate how the transition to electric vehicles (EVs) can be achieved through fiscal policy incentives and to analyze the economic consequences of integrating EVs within the Icelandic transport fleet, a dynamic simulation-based analysis is performed using a system-dynamics model of Iceland’s energy system (UniSyD_IS). The analysis is aimed at assessing the implications of different fiscal incentives towards electro-mobility for energy system development, consumer costs and government net revenues. The analysis compares different scenarios aimed at inducing EV markets through the provision of different fiscal incentives with a reference case lacking any supporting policy. All scenarios are compared in terms of different energy, economic and environmental indicators. The simulation results are compared in terms of fuel mix, energy demand, GHG emissions, government net revenue, consumer costs, trade balance, transition costs/benefits, and mitigation cost. Different fiscal policies to promote EVs are also compared in terms of their effectiveness and efficiency.