This month, Germany started to subsidize electric drive vehicles up to 4,000 EUR for the acquisition of a new car. Aimed at incentivizing emission reductions in the transport sector, the real impact on car sales still has to be assessed, given the still relatively high prices of the mainstream models such as the E-Golf and  the Mercedes’ E-Up.

In COBHAM we study how such monetary incentives interact with psychological biases and motivations of consumers.