To prevent EV incentives from widening inequality within societies, governments should design their incentive programs in a way that prioritizes equity and accessibility. One measure is to cap the price of eligible vehicles so that high-end luxury models do not disproportionately benefit from subsidies. Limiting the number of tax-free purchases per household can also prevent affluent individuals from taking advantage of multiple incentives while low-income families struggle to afford even one electric vehicle.
Furthermore, policymakers should consider targeting subsidies towards underserved communities or offering additional support for low-income households looking to transition to electric vehicles. Implementing income-based eligibility criteria or providing financial assistance specifically tailored towards disadvantaged groups can help level the playing field and ensure that everyone has equal access to clean transportation options.