@techreport{publications25798, volume = {17-875}, month = {December}, author = {Giulia Pavan}, series = {TSE Working Paper}, booktitle = {TSE Working Paper}, type = {Working Paper}, address = {Toulouse}, title = {Green Car Adoption and the Supply of Alternative Fuels}, publisher = {TSE Working Paper}, year = {2017}, institution = {Universit{\'e} Toulouse 1 Capitole}, keywords = {Alternative fuel cars, Entry, Environmental policy}, url = {https://publications.ut-capitole.fr/id/eprint/25798/}, abstract = {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.} }