October 22 - 28, 2018

Green Car Adoption and the Supply of Alternative Fuels

Pavan, Giulia (2017) Green Car Adoption and the Supply of Alternative Fuels. TSE Working Paper, n. 17-875, Toulouse

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Official URL: http://tse-fr.eu/pub/32303


Easy access to stations serving alternative fuels is an obvious concern for customers considering to buy a "green" car. Yet, the supply of fuel is seldom considered analyzing how to promote the adoption of environmentally friendly vehicles. I develop and estimate a joint model of demand for cars and supply of alternative fuels. I use this framework to compare the effectiveness of a subsidy to consumers who buy cars running on alternative fuels to that of a subsidy to gas stations installing alternative fuel pumps. Counterfactual simulations suggest that subsidizing fuel retailers to offer alternative fuels is a more effective policy that indirectly increases low emission car sales.

Item Type: Monograph (Working Paper)
Language: English
Date: December 2017
Place of Publication: Toulouse
Uncontrolled Keywords: Alternative fuel cars, Entry, Environmental policy
JEL codes: H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
H25 - Business Taxes and Subsidies
L11 - Production, Pricing, and Market Structure; Size Distribution of Firms
L91 - Transportation - General
Q48 - Government Policy
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 17 Apr 2018 08:09
Last Modified: 17 Apr 2018 08:09
OAI ID: oai:tse-fr.eu:32303
URI: http://publications.ut-capitole.fr/id/eprint/25798

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