IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v42y2021i5p149-168.html

The Impact of Electric Vehicle Density on Local Grid Costs: Empirical Evidence from Norway

Author

Listed:
  • Paal Brevik Wangsness
  • Askill Harkjerr Halse

Abstract

While a rapid shift towards electric vehicles (EVs) will contribute to reducing carbon emissions from the transport sector, there are concerns that uncoordinated charging of EVs might impose challenges for the local electricity grid. Our study is the first to investigate this empirically in a country-wide analysis, using data from the country with the highest market share of EVs, namely Norway. We present the regulatory framework in which Norwegian grid companies operate and discuss the possible impact of EV charging. Using panel data on 107 grid companies over the period 2008-2017, we then estimate the effect of local growth in EVs on local grid costs. We find that increases in EV stock are associated with increases in costs which are both statistically and economically significant. However, there is a lot of heterogeneity in these results, where the effect on grid costs are higher for small grid companies in rural areas.

Suggested Citation

  • Paal Brevik Wangsness & Askill Harkjerr Halse, 2021. "The Impact of Electric Vehicle Density on Local Grid Costs: Empirical Evidence from Norway," The Energy Journal, , vol. 42(5), pages 149-168, September.
    • Handle: RePEc:sae:enejou:v:42:y:2021:i:5:p:149-168
    DOI: 10.5547/01956574.42.5.pwan
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/01956574.42.5.pwan
    Download Restriction: no
    File URL: https://libkey.io/10.5547/01956574.42.5.pwan?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:aen:journl:2010v31-03-a01 is not listed on IDEAS
    2. Bruce C. Greenwald & Joseph E. Stiglitz, 1986. "Externalities in Economies with Imperfect Information and Incomplete Markets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 101(2), pages 229-264.
    3. Wangsness, Paal Brevik & Proost, Stef & Rødseth, Kenneth Løvold, 2018. "Vehicle choices and urban transport externalities. Are Norwegian policy makers getting it right?," Working Paper Series 2-2018, Norwegian University of Life Sciences, School of Economics and Business.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. He, Xiaoping & Jiang, Shuo & Yu, Yuxuan & Su, Siyi, 2025. "Impact of novel infrastructure investments on productivity: Evidence from public procurement of EV charging facilities in China," Energy, Elsevier, vol. 334(C).
    2. Zhang, Xiao-Bing & Xu, Jiayi & Zheng, Ying & Sari, Ramazan & Chu, Yanlai, 2026. "Electric vehicle adoption and energy prices: Empirical evidence from four Nordic countries," Energy Economics, Elsevier, vol. 154(C).
    3. Steinbach, Sarah A. & Blaschke, Maximilian J., 2024. "Enabling electric mobility: Can photovoltaic and home battery systems significantly reduce grid reinforcement costs?," Applied Energy, Elsevier, vol. 375(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stiglitz, Joseph E. & Yun, Jungyoll, 2005. "Integration of unemployment insurance with retirement insurance," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2037-2067, December.
    2. Weerachart T. Kilenthong & Robert M. Townsend, 2014. "A Market Based Solution to Price Externalities: A Generalized Framework," NBER Working Papers 20275, National Bureau of Economic Research, Inc.
    3. Berentsen, Aleksander & Huber, Samuel & Marchesiani, Alessandro, 2016. "The societal benefit of a financial transaction tax," European Economic Review, Elsevier, vol. 89(C), pages 303-323.
    4. Prasad, Ajnesh & Holzinger, Ingo, 2013. "Seeing through smoke and mirrors: A critical analysis of marketing CSR," Journal of Business Research, Elsevier, vol. 66(10), pages 1915-1921.
    5. A. Lans Bovenberg & Peter Birch Sørensen, 2004. "Improving the Equity-Efficiency Trade-Off: Mandatory Savings Accounts for Social Insurance," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 11(4), pages 507-529, August.
    6. Aldasoro, Iñaki & Delli Gatti, Domenico & Faia, Ester, 2017. "Bank networks: Contagion, systemic risk and prudential policy," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 164-188.
    7. Suarez, Javier & Sánchez Serrano, Antonio, 2018. "Approaching non-performing loans from a macroprudential angle," Report of the Advisory Scientific Committee 7, European Systemic Risk Board.
    8. Marco FRIGERIO & Daniela VANDONE, 2018. "Virtuous or Vicious? Development Banks in Europe," Departmental Working Papers 2018-07, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    9. Paramahansa Pramanik, 2026. "The Quantum Structure of Markets: Linking Hamiltonian-Jacobi-Bellman Dynamics to Schrodinger Equation through Feynman Action," Papers 2603.25086, arXiv.org.
    10. Aerni, Philipp, 2012. "Applying New Growth Theory To International Trade," Papers 415, World Trade Institute.
    11. Eduard Hartwich & Alexander Rieger & Johannes Sedlmeir & Dominik Jurek & Gilbert Fridgen, 2023. "Machine economies," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-13, December.
    12. Alessandro Fedele & Luca Panaccione, 2020. "Moral hazard and compensation packages: does reshuffling matter?," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(1), pages 223-241, July.
    13. Josef Schroth, 2021. "Optimal Monetary and Macroprudential Policies," Staff Working Papers 21-21, Bank of Canada.
    14. repec:spo:wpmain:info:hdl:2441/6761 is not listed on IDEAS
    15. Mikhail Golosov & Aleh Tsyvinski, 2007. "Optimal Taxation with Endogenous Insurance Markets," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 487-534.
    16. Elisabetta Croci Angelini & Francesco Farina & Enzo Valentini, 2016. "Contagion across Eurozone’s sovereign spreads and the Core-Periphery divide," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 43(1), pages 197-213, February.
    17. Joseph E. Stiglitz, 2015. "In Praise of Frank Ramsey's Contribution to the Theory of Taxation," Economic Journal, Royal Economic Society, vol. 0(583), pages 235-268, March.
    18. Ma, Chang, 2020. "Financial stability, growth and macroprudential policy," Journal of International Economics, Elsevier, vol. 122(C).
    19. Kilenthong, Weerachart T. & Townsend, Robert M., 2011. "Information-constrained optima with retrading: An externality and its market-based solution," Journal of Economic Theory, Elsevier, vol. 146(3), pages 1042-1077, May.
    20. Piero Gottardi & Rohit Rahi, 2014. "Value Of Information In Competitive Economies With Incomplete Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55(1), pages 57-81, February.
    21. Anton Korinek & Joseph E. Stiglitz, 2018. "Artificial Intelligence and Its Implications for Income Distribution and Unemployment," NBER Chapters, in: The Economics of Artificial Intelligence: An Agenda, pages 349-390, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:enejou:v:42:y:2021:i:5:p:149-168. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.