The Chinese government is providing consumer incentives for the purchase of hybrid and electric vehicles in five cities in a bid to boost the green vehicle industry and cut greenhouse gas emissions. During the trial project, buyers are eligible for subsidies as large as 50,000 yuan ($7,320) for plug-in hybrid vehicles and as much as 60,000 yuan for battery-operated models, according to a statement on the website of the Ministry of Finance. Consumers who purchase certain energy-efficient passenger vehicles will receive a subsidy of 3,000 yuan. While China is now the world’s largest 
market for automobiles, the high price of the cars is hampering the market for hybrids and electric vehicles, which is curbing investment in green technologies, analysts say. The government hopes to bump the annual production of hybrid and electric vehicles to 500,000 by next year. Although hybrid vehicles get significantly better mileage than most gasoline-powered vehicles, the environmental benefits of increased production of electric vehicles will be limited as long as the electricity to power those vehicles is generated primarily from coal.
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