What Does an Electric Vehicle Replace?

Benjamin Leard, Shanjun Li and Jianwei Xing
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Benjamin Leard: Resources for the Future
Shanjun Li: Resources for the Future
Authors registered in the RePEc Author Service: Dallas Burtraw

No 19-05, RFF Working Paper Series from Resources for the Future

Abstract: We estimate a discrete choice model of new vehicle demand, which includes all gasoline and electric vehicle models available in the U.S. market from 2010 to 2014.We simulate a counterfactual marketplace in 2014 that does not include electric vehicles to assess which vehicles are being replaced by electric vehicles.We find that electric vehicles are replacing relatively fuel-efficient gasoline vehicles that get an average 4.2 miles per gallon more fuel economy than the average gasoline vehicle.We also simulate alternative electric vehicle subsidy designs, finding that subsidies targeted toward low and middle income households can be more equitable and more cost-effective than the current uniform federal subsidy.

Date: 2019-02-13
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Citations: View citations in EconPapers (2)

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