Electric Vehicle Subsidies: Cost-Effectiveness and Emission Reductions – Best Paper Award, 50th EARIE Conference

(JOB MARKET PAPER)

Abstract

I design a structural model of demand for electric vehicles and the supply of a pub- lic charging infrastructure by forward-looking local planners. Using Canadian data, I study the cost-effectiveness of electric vehicle incentives in this context. Subsidizing electric vehicle purchases almost doubled adoption in Quebec but had only a small impact on network provision. I conduct a rigorous cost-benefit analysis to study the environmental performance of Quebec’s rebate program. I find that the marginal abate- ment cost of emissions is substantially higher than the social cost of carbon, suggesting that policymakers in Quebec over-invested on electric vehicle incentives.

Publication
Working Paper