The impact of electric vehicle penetration: A recursive dynamic CGE analysis of China

Boqiang Lin () and Wei Wu

Energy Economics, 2021, vol. 94, issue C

Abstract: China is now the largest oil importer in the world. In 2018, the external oil dependence of China exceeded 70%. Restrain the oil consumption is important for China's energy security and environmental protection. The electric vehicle is considered to be the main method to solve these problems. This paper adopts a logistic model to depict the growth path of vehicle ownership. Base on the empirical results, a recursive computable general equilibrium model is constructed to predict future oil demand and simulate the impact of electric vehicles on oil demand, macro-economic, and emission. The result reveals that the development of electric vehicles can make China's oil demand peak in 2029. The increase in electric vehicle penetration rate can positively promote the economic output and reduce nitrogen oxide emissions. Though the carbon emissions will increase under the current power structure, the development of electric vehicles may provide enormous CO2 mitigation potential if the non-fossil energy can dominate the electricity structure in the future

Keywords: Oil demand; Electric vehicle; Economic impact; Emissions (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:94:y:2021:i:c:s0140988320304266

DOI: 10.1016/j.eneco.2020.105086

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