Fueling Electrification: The Impact of Gas Prices on Hybrid Car Usage

Laura Grigolon, Eunseong Park and Kevin Remmy ()

CRC TR 224 Discussion Paper Series from University of Bonn and University of Mannheim, Germany

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. Considering the choice of fueling versus recharging, we estimate that drivers value time at €15 to €41/hour.

Keywords: plug-in-hybrids; fuel prices; fuel elasticities; value of time; fuel consumption; driving habit formation (search for similar items in EconPapers)
JEL-codes: D12 L71 L91 Q31 Q41 (search for similar items in EconPapers)
Pages: 36
Date: 2024-01
New Economics Papers: this item is included in nep-ene, nep-env and nep-tre
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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:bon:boncrc:crctr224_2024_494

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