Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
Environmental policies may be ineffective when firms lack incentives to adopt cleaner technologies due to their market power. This paper examines whether a competition shock in a concentrated industry can stimulate the adoption of policy-favored cleaner technologies. Using a unique panel dataset covering the universe of vehicles purchased by taxi drivers in Spain, we exploit the entry of ride-hailing platforms as a natural experiment to identify the impact on their vehicle choices. We find that increased competition led to a 30% surge in the adoption of electric-powered vehicles among taxi drivers. Back-of-the-envelope calculations suggest an overall reduction in CO2 emissions, highlighting the potential of competition policy to promote environmental sustainability while mitigating market power.