Research Seminar (SSB/CREE seminar): Green Cars Adoption and the Supply of Alternative Fuels
- Giulia Pavan, Toulouse School of Economics
- 22 March 2018
- 11:45 - 12:45
- Auditoriet, SSB, Akersveien 26
Giulia Pavan - Toulouse School of Economics:
"Green Cars Adoption and the Supply of Alternative Fuels"
Easy access to stations serving alternative fuels is an obvious concern for customers considering to buy a “green" car. Yet, the supply of fuel is seldom considered analyzing how to promote the adoption of environmentally friendly vehicles. I develop and estimate a joint model of demand for cars and supply of alternative fuels. I use this framework to compare the effectiveness of a subsidy to consumers who buy cars running on alternative fuels to that of a subsidy to gas stations installing alternative fuel pumps. Counterfactual simulations suggest that subsidizing fuel retailers to offer alternative fuels is a more effective policy that indirectly increases low emission car sales.