Fueling electrification: The impact of gas prices on hybrid car usage

Laura Grigolon, Eunseong Park and Kevin Remmy

No 24-017, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: We use micro-level data on fuel consumption, mileage, and travel mode to study plug-in hybrid drivers' response to fuel prices. When fuel prices rise, plug-in hybrids reduce fuel consumption more than gasoline and diesel cars. They do not reduce their mileage but increase electric recharging, without evidence of habit formation. As the share of kilometers driven in electric mode by plug-in hybrids is only half the official test cycle value, fuel prices are effective in improving the environmental performance of these vehicles. We estimate drivers' value of charging time at €15 to €41/hour.

Keywords: fuel price elasticity; automobiles; carbon emissions (search for similar items in EconPapers)
JEL-codes: D12 L91 Q31 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-ene, nep-env and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://www.econstor.eu/bitstream/10419/300273/1/1895477077.pdf (application/pdf)

Related works:
Working Paper: Fueling Electrification: The Impact of Gas Prices on Hybrid Car Usage (2024)
Working Paper: Fueling Electrification: The Impact of Gas Prices on Hybrid Car Usage (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:300273

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