Graduation Year


Date of Submission


Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Angela Vossmeyer

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In California, government intervention in the electric vehicle markets is significant through the issuance of tax credits that can be transferred between manufacturers to satisfy regulatory requirements. In this paper, I explore how these tax credits influence the stock price volatility of automobile manufacturers. By constructing an annual panel dataset of automobile companies from 2009-2017 and using a random effect panel data regression model, I find that the presence of electric vehicle tax credits reduces stock price volatility. These results suggest the existence of government incentive programs for electric vehicles can reduce financial uncertainty for electric vehicle manufacturers and that financial volatility should increase once these programs expire.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.