Optimal policy and network effects for the deployment of zero emission vehicles

B-Tier
Journal: European Economic Review
Year: 2020
Volume: 126
Issue: C

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

We analyze the impact of indirect network effects in the deployment of zero emission vehicles in a static partial equilibrium model. In most theoretical analyses, direct and indirect effects are conflated, and relatively few authors have explicitly considered indirect network effects. We also introduce the market power of vehicle producers and scale effects in the production function. The model exhibits a multiplicity of local social critical points and market equilibria, suggesting a possibility of lock-in. The optimal two subsidies for vehicles and stations are derived so that the Pareto dominating market equilibrium would coincide with the social optimum. Configurations associated with different values of the parameters are explored to revisit the policy issues at various stages of deployment of hydrogen and battery electric vehicles.

Technical Details

RePEc Handle
repec:eee:eecrev:v:126:y:2020:i:c:s0014292120300817
Journal Field
General
Author Count
2
Added to Database
2026-01-26