Launching strategy for electric vehicles: Lessons from China and Taiwan

China has seen explosive growth in the sales of electric bikes since 1998. The boom was triggered by Chinese local governments' efforts to restrict motorcycles in city centers. However, many Chinese cities have started to extend the restriction to electric bikes. Whether China's electric bike economy will continue to develop is highly uncertain. The experience of China's electric bike boom suggests that limiting the fossil-fueled alternatives could be an effective policy tool in fostering the commercialization of electric vehicles. The failure of Taiwan's electric scooter policy, on the other hand, indicates that subsidies alone may not be a sufficient launching strategy. The policy approach of limiting the alternatives deserves serious consideration if policymakers wish to foster electric vehicles.