%0 Report
%9 Working Paper
%A Pavan, Giulia
%B TSE Working Paper
%C Toulouse
%D 2017
%F publications:25798
%I Université Toulouse 1 Capitole
%K Alternative fuel cars
%K Entry
%K Environmental policy
%T Green Car Adoption and the Supply of Alternative Fuels
%U https://publications.ut-capitole.fr/id/eprint/25798/
%V 17-875
%X 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.