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Electric vehicle usage, pollution damages, and the electricity price elasticity of driving

Cody Nehiba

Journal of Environmental Economics and Management, 2024, vol. 124, issue C

Abstract: I study battery electric vehicle (BEV) usage and ownership characteristics with fundamental implications for the electrification of passenger transportation. Using data covering the entire BEV population in New York, I quantify BEV mileage and electricity consumption and highlight the important role of vehicle utilization in contributing to real-world pollution damages and their spatial variation. I then study the factors influencing how much BEVs are driven with a focus on estimating the electricity price elasticity of BEV mileage. Understanding how drivers respond to these changes in operating costs may help align the social and private costs of BEV driving and illustrates how electric utilities may affect transportation outcomes in the future. I find a 10% increase in residential electricity prices reduces mileage by 1%, but responsiveness falls as public charging stations—where prices are often decoupled from electricity costs—become available.

Keywords: Electric vehicles; Electricity prices; Travel demand; Air pollution (search for similar items in EconPapers)
JEL-codes: L91 Q41 Q52 R41 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:124:y:2024:i:c:s009506962300133x

DOI: 10.1016/j.jeem.2023.102915

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Journal of Environmental Economics and Management is currently edited by M.A. Cole, A. Lange, D.J. Phaneuf, D. Popp, M.J. Roberts, M.D. Smith, C. Timmins, Q. Weninger and A.J. Yates

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