Powering up a slow charging market: how do government subsidies affect charging station supply?

Zunian Luo

MPRA Paper from University Library of Munich, Germany

Abstract: Electric vehicle adoption is considered by policymakers to be a promising pathway for addressing climate change. However, the market for charging stations suffers from a market failure: a lack of EV sales disincentivizes charging station production, which in turn inhibits mass EV adoption. Charging station subsidies are discussed as policy levers that can stimulate charging station supply to correct this market failure. Nonetheless, there is limited research examining the extent such subsidies are successful. Using annual data on electric vehicle sales, charging station counts, and subsidy amounts from 57 California counties and a staggered difference-in-differences methodology, I find that charging station subsidies are highly effective: a 1% increase in subsidies expands the supply of stations by 2.5%. This finding suggests that governmental intervention can help correct the market failure in the charging station market.

Keywords: electric vehicles; charging stations; climate change; difference in differences (search for similar items in EconPapers)
JEL-codes: L62 Q48 Q58 (search for similar items in EconPapers)
Date: 2022-10-20
New Economics Papers: this item is included in nep-ene, nep-env and nep-tre
References: View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/115088/1/MPRA_paper_115088.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:115088

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().