This thesis explores the history of electric vehicle (EV) and its subsequent importance in the global effort to reverse the effects of global warming, examining the policies implemented by other nations and comparing it with the current and potential future EV diffusion policy. The ongoing effort to replace vehicles that uses internal combustion engine (ICE) with zero emission EVs in industrialized nations has enjoyed various levels of success, as well as facing both political and technological barriers. Taiwan, with its dense population and urbanized environment, would benefit heavily from the electrification of the private transportation sector since the issue of air pollution has at the political forefront in recent years. However, the unique characteristics of the Taiwan does create barriers that is especially difficult to overcome. In order to suggest the most practical policy, a detailed analysis of the current one as well as the industry would be conducted, additional factors such as housing and politic would also be considered. The proposed policy would be designed the idea of practicality, something that is entirely doable with the current technological level and can achieve some level of results in the foreseeable future, instead of a policy that has surface-level progressiveness and would not be easily implemented due to the controversy and resistance it generates. The eventual findings of this research present a relatively realistic solution that causes minimal disturbance, which is the “hybrid” approach, opting to emphasize on adopting the hybrid electric vehicles as a more moderate bridge rather than focusing on the electric vehicles which still has technical issues that needs to be solved before it can be widely adopted in Taiwan.