Applied Micro Seminar : Every Tuesday
Time: 12:15 pm – 13:30 pm
Date: October, 14th
Room : 3001

Mathias REYNAERT “Equilibrium Effects in Complementary Markets: Electric Vehicle Adoption and Electricity Pricing,” with Pascal Heid and Kevin Remmy, October 2024

Abstract :

“The transition to electric vehicles (EVs) shifts the complementary market for passenger transport from oil to electricity. We develop and estimate a joint equilibrium model of the German electricity and automobile markets, emphasizing the timing of EV charging, as electricity generation costs and pollution vary intraday. Our results show that under Germany’s current electricity pricing scheme, EVs create a significant pecuniary externality: electricity expenses rise by €0.66 for every €1 spent charging. Exposing charging to wholesale price variation eliminates the pecuniary increases EV adoption further without reducing the spillovers on other electricity consumers.”

Organizers:
Benoît SCHMUTZ (Pôle économie du CREST)
Clément MALGOUYRES (Pôle économie du CREST)

Sponsors:
CREST