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Heid, Pascal, Remmy, Kevin
and Reynaert, Mathias
(2024)
Equilibrium Effects in Complementary Markets: Electric Vehicle Adoption and Electricity Pricing.
TSE Working Paper, n. 24-1589, Toulouse
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Abstract
The transition to electric vehicles (EVs) shifts the complementary market for passenger transport from oil to electricity. We develop and estimate a joint equilibrium model of the German electricity and automobile markets, emphasizing the timing of EV charging, as electricity generation costs and pollution vary intraday. Our results show that under Germany’s current electricity pricing scheme, EVs create a significant pecuniary externality: electricity expenses rise by €0.66 for every €1 spent charging. Exposing charging to wholesale price variation eliminates the pecuniary externality, makes EVs greener, and increases adoption—a triple dividend.
| Item Type: | Monograph (Working Paper) |
|---|---|
| Language: | English |
| Date: | October 2024 |
| Place of Publication: | Toulouse |
| Uncontrolled Keywords: | Electric vehicles, electricity markets, charging, complementary markets |
| JEL Classification: | L5 - Regulation and Industrial Policy L6 - Industry Studies - Manufacturing L9 - Industry Studies - Transportation and Utilities Q4 - Energy Q5 - Environmental Economics |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Institution: | Université Toulouse Capitole |
| Site: | UT1 |
| Date Deposited: | 04 Nov 2024 07:24 |
| Last Modified: | 04 Nov 2024 07:24 |
| OAI Identifier: | oai:tse-fr.eu:129899 |
| URI: | https://publications.ut-capitole.fr/id/eprint/49820 |
