Optimal Policy and Network Effects for the Deployment of Zero Emission Vehicles

Guy Meunier and Jean-Pierre Ponssard

No 7026, CESifo Working Paper Series from CESifo

Abstract: We analyze the impact of indirect network effects in the deployment of zero emission vehicles in a static partial equilibrium model. In most theoretical analysis direct and indirect effects are conflated, and relatively few authors have explicitly considered indirect network effects. We also introduce the market power of vehicle producers and scale effects in the production function. The model exhibits a multiplicity of local social extrema and of market equilibria, suggesting a possibility of lock-in. The optimal set of subsidies is derived so that the Pareto dominating market equilibrium would coincide with the social optimum. This framework is applied to the case of the fuel cell electric (hydrogen) vehicles.

Keywords: E-mobility; network effects; joint incentives for infrastructure and car rebates (search for similar items in EconPapers)
JEL-codes: C61 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-ene, nep-env, nep-reg and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Optimal policy and network effects for the deployment of zero emission vehicles (2020)
Working Paper: Optimal policy and network effects for the deployment of zero emission vehicles (2020)
Working Paper: Optimal Policy and Network Effects for the Deployment of Zero Emission Vehicles * (2018)
Working Paper: Optimal Policy and Network Effects for the Deployment of Zero Emission Vehicles * (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_7026

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