Electric vehicles (EVs) have been widely considered as an effective way to reduce greenhouse gas emissions from the transportation sector. The Korean government has been actively promoting EVs as substitutes for the prevailing internal combustion engine vehicles to mitigate environmental impacts. National and regional governmental policies have been formulated to achieve the penetration goal of 3 million EVs in South Korea by 2030. However, the current market penetration rate of EVs in Korea is not enough to meet this goal. This study identifies the determinants of the regional EV penetration performance by analyzing regional panel data and estimates the quantitative impact of each determinant. We use a panel fixed effect model to evaluate the effectiveness of each potential factor. The results of this study signify that the number of newly registered diesel and gasoline cars adversely affects EV market penetration, whereas the number of newly registered electric cars shows a positive trend. In terms of policies, national subsidies negatively affect the increase in the number of EVs; however, regional subsidies positively affect the penetration rate. Moreover, population density and cars owned per capita have adverse and positive implications on the EV penetration performances, respectively. Climatic and environmental factors do not affect the penetration rate considerably.
Keywords: Electric Vehicle, Regional Panel Data, Panel Fixed Effect Model, EV Penetration, Determinant