What E-Bike Rebates Can (and Can’t) Do
New research answers key questions about whether voucher programs that subsidize electric bike purchases are good for the planet — and the cities that pay for them.
New e-bikes from Harley Davidson on display in January 2024.
Photo by Mert Alper Dervis/Anadolu via Getty Images
Like designer shoes or $45 water bottles, transportation policies occasionally explode in popularity. Such is the case with e-bike incentives, which have been mushrooming across the US from Pasadena to Cape Cod. More than 100 cities, counties and states have proposed or created programs to encourage residents to purchase battery-powered bikes, and Congress has considered enacting one at the federal level.
Policymakers’ enthusiasm is understandable. Every trip taken by an e-bike is greener, healthier and more space-efficient than it would have been in a car (not to mention less dangerous for other road users). But in the rush to encourage e-bike sales, a few questions have gone unanswered: What is the optimal rebate amount? Do the incentives merely subside buyers who could afford an e-bike without any help? And just how climate-friendly are e-bike rebates, anyway?