Electric Vehicle Subsidies: Cost-Effectiveness and Emission Reductions

Jean-François Fournel ()

No 23-1465, TSE Working Papers from Toulouse School of Economics (TSE)

Abstract: I design a structural model of demand for electric vehicles and the supply of a public charging infrastructure by forward-looking local planners. Using Canadian data, I study the cost-effectiveness of electric vehicle incentives in this context. Subsidizing electric vehicle purchases almost doubled adoption in Quebec but had only a small impact on network provision. I conduct a rigorous cost-benefit analysis to study the environmental performance of Quebec’s rebate program. I find that the marginal abatement cost of emissions is substantially higher than the social cost of carbon, suggesting that policymakers in Quebec over-invested on electric vehicle incentives.

Keywords: electric vehicles; charging stations; subsidies; emission abatement; cost-benefit analysis; indirect network effects. (search for similar items in EconPapers)
JEL-codes: H41 L91 Q58 (search for similar items in EconPapers)
Date: 2023-09-04, Revised 2024-06
New Economics Papers: this item is included in nep-ene, nep-env, nep-ind and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:tse:wpaper:128429

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