Do Electricity Prices Affect Electric Vehicle Adoption?

James PhD Bushnell, Erich Muehlegger and David Rapson

Institute of Transportation Studies, Working Paper Series from Institute of Transportation Studies, UC Davis

Abstract: This report presents evidence that gasoline prices have a larger effect on demand for battery electric vehicles (BEVs) than do electricity prices in California. A spatially-disaggregated panel dataset of monthly BEV registration records was matched to detailed records of gasoline and electricity prices in California from 2014-2017, and the matched data was used to estimate the effect of energy prices on BEV demand. Two distinct empirical approaches (panel fixed-effects and a utility-border discontinuity) yield remarkably similar results: a given change in gasoline prices has roughly four times the effect on BEV demand as a similar percentage change in electricity prices.

Keywords: Social and Behavioral Sciences; Electric vehicles; prices; operating costs; demand; electricity; gasoline; empirical methods; consumer behavior (search for similar items in EconPapers)
Date: 2021-05-01
New Economics Papers: this item is included in nep-ene, nep-reg and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: Do Electricity Prices Affect Electric Vehicle Adoption? (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:cdl:itsdav:qt7p19k8c6

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