Graduation Year
2021
Date of Submission
11-2020
Document Type
Campus Only Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
Angela Vossmeyer
Terms of Use & License Information
Abstract
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.
Recommended Citation
Kruteck, Ethan, "EVs Driving the Stock Market: An Empirical Analysis of the Effect of Electric Vehicle Tax Credits on Stock Price Volatility" (2021). CMC Senior Theses. 2555.
https://scholarship.claremont.edu/cmc_theses/2555
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.
