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Do Electricity Prices Affect Electric Vehicle Adoption?

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  • Bushnell, James PhD
  • Muehlegger, Erich PhD
  • Rapson, David PhD

Abstract

This report presents evidence that gasoline prices have a larger effect on demand for battery electric vehicles (BEVs) than do electricity prices in California. A spatially-disaggregated panel dataset of monthly BEV registration records was matched to detailed records of gasoline and electricity prices in California from 2014-2017, and the matched data was used to estimate the effect of energy prices on BEV demand. Two distinct empirical approaches (panel fixed-effects and a utility-border discontinuity) yield remarkably similar results: a given change in gasoline prices has roughly four times the effect on BEV demand as a similar percentage change in electricity prices.

Suggested Citation

  • Bushnell, James PhD & Muehlegger, Erich PhD & Rapson, David PhD, 2021. "Do Electricity Prices Affect Electric Vehicle Adoption?," Institute of Transportation Studies, Working Paper Series qt7p19k8c6, Institute of Transportation Studies, UC Davis.
    • Handle: RePEc:cdl:itsdav:qt7p19k8c6
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    References listed on IDEAS

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    More about this item

    Keywords

    Social and Behavioral Sciences; Electric vehicles; prices; operating costs; demand; electricity; gasoline; empirical methods; consumer behavior;
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