Heid, Pascal, Remmy, Kevin and Reynaert, Mathias (2026) Equilibrium Effects in Complementary Markets: Electric Vehicle Adoption and Electricity Pricing. TSE Working Paper, n. 24-1589, Toulouse

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Abstract

Electric vehicles shift passenger transport from oil to electricity, linking vehicle adoption to hourly power-market conditions. We develop and estimate a joint equilibrium model of German vehicle demand and electricity supply in which driver-specific charging decisions map travel profiles and electricity prices into EV operating costs and load. A 10% EV stock raises wholesale prices by 3.3%, creating sizable cost spillovers on non-EV electricity users, but reduces EV adoption by less than 1%. Time-varying tariffs lower charging costs and shift load to cheaper hours; in equilibrium, EV adoption offsets much of the system-cost relief while redirecting generator profits toward renewables.

Item Type: Monograph (Working Paper)
Language: English
Date: 29 May 2026
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: 18 Jun 2026 09:40
OAI Identifier: oai:tse-fr.eu:129899
URI: https://publications.ut-capitole.fr/id/eprint/49820
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