The Electric Vehicle Transition and the Economics of Banning Gasoline Vehicles

A-Tier
Journal: American Economic Journal: Economic Policy
Year: 2021
Volume: 13
Issue: 3
Pages: 316-44

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Electric vehicles have a unique potential to transform personal transportation. We analyze this transition with a dynamic model capturing falling costs of electric vehicles, decreasing pollution from electricity, and increasing vehicle substitutability. Our calibration to the US market shows a transition from gasoline vehicles is not optimal at current substitutability: a gasoline vehicle production ban would have large deadweight loss. At higher substitutability, a ban can reduce deadweight loss from vehicle mix and adoption timing inefficiencies. A cumulative gasoline vehicle production quota has smaller deadweight loss, and an electric vehicle purchase subsidy is more robust to regulator misperceptions about substitutability.

Technical Details

RePEc Handle
repec:aea:aejpol:v:13:y:2021:i:3:p:316-44
Journal Field
General
Author Count
3
Added to Database
2026-01-26