South Korea has set a goal of deploying clean vehicles as a key strategy in the transportation sector to achieve carbon neutrality by 2050. The plan is to increase the share of battery electric vehicles (BEVs) and hydrogen vehicles (FCEVs) to over 85% to reduce greenhouse gas emissions to less than one-tenth of current levels. Dr. Hyunseok Kim from KDI has analyzed the current situation and identified areas for improvement in the clean vehicle promotion policy.

The clean vehicle promotion initiative includes subsidies provided at the 'purchase stage' and the expansion of charging infrastructure at the 'ownership stage.' Dr. Kim’s analysis revealed that expanding charging infrastructure is significantly more cost-effective in promoting clean vehicles than providing subsidies.

As South Korea continues to push for increased adoption of clean vehicles to meet greenhouse gas reduction targets, Dr. Kim suggests that future policies should prioritize enhancing the charging infrastructure over providing subsidies. Specifically, since private electric vehicles are less sensitive to price and technological advancements are reducing the cost of BEVs, the long-term effectiveness of subsidies may decline. Therefore, policies should aim to improve the convenience of long-distance travel by adequately installing fast chargers at key travel hubs, such as highway rest areas.

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