Carbon Policy and the Emissions Implications of Electric Vehicles

Kenneth Gillingham, Marten Ovaere and Stephanie Weber

No 8974, CESifo Working Paper Series from CESifo

Abstract: Will a carbon tax improve the welfare consequences of policies to promote electric vehicles? This paper examines when a complementarity could exist between carbon pricing and high electric vehicle adoption. We analyze electricity generation in recent years to show that in several regions, carbon pricing interacts with electric vehicle adoption. Under moderate carbon prices like those in effect today, additional electric vehicles will be more likely to be charged with coal-fired generation than without carbon pricing. We confirm this finding using a detailed dynamic model that includes the transportation and power sectors. At much higher carbon prices, the effect reverses.

Keywords: electric vehicles; carbon pricing; interacting regulations; air pollution (search for similar items in EconPapers)
JEL-codes: H23 Q48 Q53 Q54 Q58 R48 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-ene, nep-env and nep-his
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Working Paper: Carbon Policy and the Emissions Implications of Electric Vehicles (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_8974

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