Abstract
Electric vehicles shift passenger transport from oil to electricity, linking vehicle adoption to hourly power-market conditions. We develop and estimate a joint equilibrium model of German vehicle demand and electricity supply in which driver-specific charging decisions map travel profiles and electricity prices into EV operating costs and load. A 10% EV stock raises wholesale prices by 3.3%, creating sizable cost spillovers on non-EV electricity users, but reduces EV adoption by less than 1%. Time-varying tariffs lower charging costs and shift load to cheaper hours; in equilibrium, EV adoption offsets much of the system-cost relief while redirecting generator profits toward renewables.
Keywords
Electric vehicles; electricity markets; charging; complementary markets;
JEL codes
- L5: Regulation and Industrial Policy
- L6: Industry Studies: Manufacturing
- L9: Industry Studies: Transportation and Utilities
- Q4: Energy
- Q5: Environmental Economics
Reference
Pascal Heid, Kevin Remmy, and Mathias Reynaert, “Equilibrium Effects in Complementary Markets: Electric Vehicle Adoption and Electricity Pricing”, TSE Working Paper, n. 24-1589, October 2024, revised May 2026.
See also
Published in
TSE Working Paper, n. 24-1589, October 2024, revised May 2026