Résumé
The transition to electric vehicles (EVs) shifts the complementary market for passenger transport from oil to electricity. We develop and estimate a joint equilibrium model of the German electricity and automobile markets, emphasizing the timing of EV charging, as electricity generation costs and pollution vary intraday. Our results show that under Germany’s current electricity pricing scheme, EVs create a significant pecuniary externality: electricity expenses rise by €0.66 for every €1 spent charging. Exposing charging to wholesale price variation eliminates the pecuniary externality, makes EVs greener, and increases adoption—a triple dividend.
Mots-clés
Electric vehicles; electricity markets; charging; complementary markets;
Codes JEL
- L5: Regulation and Industrial Policy
- L6: Industry Studies: Manufacturing
- L9: Industry Studies: Transportation and Utilities
- Q4: Energy
- Q5: Environmental Economics
Référence
Pascal Heid, Kevin Remmy et Mathias Reynaert, « Equilibrium Effects in Complementary Markets: Electric Vehicle Adoption and Electricity Pricing », TSE Working Paper, n° 24-1589, octobre 2024.
Voir aussi
Publié dans
TSE Working Paper, n° 24-1589, octobre 2024