Equilibrium Effects in Complementary Markets: Electric Vehicle Adoption and Electricity Pricing

Pascal Heid, Kevin Remmy and Mathias Reynaert
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Pascal Heid: TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse
Kevin Remmy: Unknown

Working Papers from HAL

Abstract: lectric vehicles shift passenger transport from oil to electricity, linking vehicle adoption to hourly power-market conditions. We develop and estimate a joint equilibrium model of German vehicle demand and electricity supply in which driver-specific charging decisions map travel profiles and electricity prices into EV operating costs and load. A 10% EV stock raises wholesale prices by 3.3%, creating sizable cost spillovers on non-EV electricity users, but reduces EV adoption by less than 1%. Time-varying tariffs lower charging costs and shift load to cheaper hours; in equilibrium, EV adoption offsets much of the system-cost relief while redirecting generator profits toward renewables.

Keywords: Electric vehicles; electricity markets; charging; complementary markets (search for similar items in EconPapers)
Date: 2026-06-18
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Working Paper: Equilibrium Effects in Complementary Markets: Electric Vehicle Adoption and Electricity Pricing (2026)
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