The Impact of High Occupancy Vehicle (HOV) Lane Access On Hybrid-Electric Vehicle Adoption: Evidence from U.S. States

Abstract

In 2009, nine states in the United States allowed a solo driver in a hybrid vehicle access to high occupancy vehicle (HOV) lanes without restrictions. This policy was designed to be an effective incentive to promote hybrid and electric vehicles consumption. There is little academic research specifically evaluating this policy effect and exploring the relationship between the HOV lane incentives and hybrid vehicle ownership. This paper tries to fill the gap by using the 2009 National Household Travel Survey (NHTS) data and Heckman two-step model to examine the relationship. Controlling for demographic characteristics, household composition, travel pattern, and monetary incentives, this paper finds no evidence of a meaningful relationship between the HOV lane incentive and hybrid vehicle consumption. However, there is a positive and statistically significant association between state financial incentives and hybrid vehicle adoption. Policymakers should be well advised to reexamine the hybrid vehicle purchasing incentive policy based on sound empirical evidence.