Researchers in the economics journal ESB say subsidising electric lease cars helps protect low‑income households from rising fuel costs. This approach is far more efficient than broad excise duty reductions, which they describe as a costly measure that mainly benefits higher‑income groups. According to their analysis, the fuel excise reduction introduced in 2022 and still in place costs 1.7 billion euros per year while disproportionately supporting households with higher incomes.
Structural solution
The researchers calculate that roughly 160,000 low‑income households that rely heavily on their cars could obtain an electric lease vehicle. They note that electric driving significantly reduces vulnerability to high fuel prices, but that the upfront purchase cost of an electric vehicle remains a major barrier for low‑income households. A lease subsidy, they argue, helps overcome that barrier and enables households to benefit from lower energy and maintenance costs.
Fuel Shock
It is precisely the lowest income groups that are most exposed to rising fuel prices. These households spend, on average, twice as much of their income on fuel compared to higher‑income households. Yet they benefit far less from generic compensation measures. By removing the high purchase cost of an electric car, households can switch to a vehicle that is cheaper to use in the long run. The researchers describe social leasing as a correction of a major market failure. People with limited financial means cannot invest in a vehicle that would ultimately reduce their monthly expenses.
France as an example
The researchers note that the Dutch cabinet is considering such a scheme, inspired by measures introduced in France. In 2024, France became the first European country to launch a national social‑leasing programme, aimed at the lower half of the income distribution. Participants had to rely on a car for work, and the scheme applied only to fully electric cars under €47,000. The French government subsidised the full initial lease costs, resulting in monthly payments of around €100 to €140 for smaller models. Interest was high, and tens of thousands of contracts were signed.
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