 Platform intermediation to sponsor alternative fuel vehiclesAntje-Mareike Dietrich Transport Policy, 2017, vol. 54, issue C, 90-99 Abstract: Many governments promote green technological innovation within the automobile sector as a means of combating climate change. Most of these innovations are driven by alternative fuels. Subsidies for buyers and governmental investment in service infrastructure are widely used. This paper investigates the question of efficient market intervention by considering the two-sided market character of the automobile market. This study shows that network effects, competitive effects triggered by an increase in automobile users, decreasing marginal utilities of additional service stations and, in the case of governmental support, environmental externalities determine the welfare-efficient extent of platform intermediation. Regarding green technologies, the results of the analysis indicate that governmental promotion of service infrastructure is reasonable, although governments should be cautious about subsidizing buyers. Intervention in favor of dirty technologies is rarely justifiable. Keywords: Network effects; Two-sided markets; Platform intermediation; Alternative fuel vehicles; Climate change; Regulation (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:trapol:v:54:y:2017:i:c:p:90-99 Ordering information: This journal article can be ordered from DOI: 10.1016/j.tranpol.2016.12.001 Access Statistics for this article Transport Policy is currently edited by Y. Hayashi More articles in Transport Policy from Elsevier |
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