Document de travail

Green Car Adoption and the Supply of Alternative Fuels

Giulia Pavan

Résumé

Easy access to stations serving alternative fuels is an obvious concern for customers considering to buy a "green" car. Yet, the supply of fuel is seldom considered analyzing how to promote the adoption of environmentally friendly vehicles. I develop and estimate a joint model of demand for cars and supply of alternative fuels. I use this framework to compare the effectiveness of a subsidy to consumers who buy cars running on alternative fuels to that of a subsidy to gas stations installing alternative fuel pumps. Counterfactual simulations suggest that subsidizing fuel retailers to offer alternative fuels is a more effective policy that indirectly increases low emission car sales.

Mots-clés

Alternative fuel cars; Entry; Environmental policy;

Codes JEL

  • H23: Externalities • Redistributive Effects • Environmental Taxes and Subsidies
  • H25: Business Taxes and Subsidies
  • L11: Production, Pricing, and Market Structure • Size Distribution of Firms
  • L91: Transportation: General
  • Q48: Government Policy

Référence

Giulia Pavan, « Green Car Adoption and the Supply of Alternative Fuels », TSE Working Paper, n° 17-875, décembre 2017.

Voir aussi

Publié dans

TSE Working Paper, n° 17-875, décembre 2017