 One or two non-fossil technologies in the decarbonized transport sector?Gøril L. Andreassen and Knut Einar Rosendahl Resource and Energy Economics, 2022, vol. 69, issue C Abstract: What factors determine whether policymakers should promote one or more technologies in a decarbonized road transport sector, and what policies should governments choose? We investigate these questions theoretically and numerically through a static, partial equilibrium model for the road transport market. We find that one important factor is how close substitutes the two vehicle technologies are. Further, the number of vehicles of one technology depends on the number of vehicles of the other technology, both in the market and in the first-best solution. The first-best policy involves a subsidy of the markup on charging and filling, where the markup is higher the more utility increases with the number of stations. However, as there are several possible market equilibria, additional policies may be needed to avoid an unwanted lock-in. Keywords: Indirect network effects; Decarbonization; Climate policy; Electric vehicles; Hydrogen vehicles; Technology (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:resene:v:69:y:2022:i:c:s0928765522000318 DOI: 10.1016/j.reseneeco.2022.101314 Access Statistics for this article Resource and Energy Economics is currently edited by J. F. Shogren and S. Smulders More articles in Resource and Energy Economics from Elsevier |
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