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arXiv · 2304.01709

With great power (prices) comes great tail pipe emissions? \\ A natural experiment of electricity prices and electric car adoption

Johannes Mauritzen
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Abstract

A fundemantal and unanswered question for the widely shared goal of electrifying passenger vehicles is how the price of electricity, which can vary greatly across countries and regions, affects buying behavior. I make use of a natural experiment in Norway in the period 2021-2022 when large price differences between north and south emerged to estimate the effect of electricity prices on the decision to purchase a pure battery-electric vehicle. Simple difference estimates along the border of the price zones as well as a difference-in-difference regression model suggest a significant but economically modest effect of a 2-4\% reduction in the probability of purchasing an electric vehicle in the high price zone. A counterfactual simulation suggests that there would have been about 3000 to 6000 fewer electric vehicles sold in the high-price south compared to a scenario where the south had equally low prices as in the north.

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BibTeXRIS

Johannes Mauritzen. 2023-04-04. With great power (prices) comes great tail pipe emissions? \\ A natural experiment of electricity prices and electric car adoption. https://arxiv.org/abs/2304.01709

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