IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-04208462.html

Do retail businesses have efficient incentives to invest in public charging stations for electric vehicles?

Author

Listed:
  • Marie-Louise Arlt

    (LMU - Ludwig Maximilian University [Munich] = Ludwig Maximilians Universität München)

  • Nicolas Astier

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

Many public charging stations for electric vehicles in the United States are chargers installed at the premises of pre-existing businesses such as grocery stores or restaurants. This paper investigates the incentives of these retail businesses to install and operate charging stations. First, we note that observed pricing schedules for charging stations significantly depart from both first-best and monopoly pricing. We argue that a possible explanation is that many hosting facilities may install a charging station primarily as a strategy to attract more customers to their core business. Second, we use an imperfect competition model to study retail businesses' incentives to invest in charging stations. We show that hosting facilities may be trapped in a prisoner's dilemma where investing in a charging station decreases their profit in the long run. However, the equilibrium level of investments in public charging stations need not differ from the socially optimal outcome.

Suggested Citation

  • Marie-Louise Arlt & Nicolas Astier, 2023. "Do retail businesses have efficient incentives to invest in public charging stations for electric vehicles?," Post-Print halshs-04208462, HAL.
    • Handle: RePEc:hal:journl:halshs-04208462
    DOI: 10.1016/j.eneco.2023.106777
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    Other versions of this item:

    Citations

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


    Cited by:

    1. Yu, Yi & Zha, Donglan & Zhou, Dequn & Wang, Qunwei, 2025. "Promoting the adoption of electric vehicles through private charging infrastructure: Should subsidies be for the builder or non-builder?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 192(C).
    2. Sun, Jie & Sun, Siying & Chen, Boli & Hu, Yukun, 2024. "Charging change: Analysing the UK's electric vehicle infrastructure policies and market dynamics," Energy Policy, Elsevier, vol. 191(C).
    3. Goh, Hui Hwang & Huang, Changhe & Liang, Xue & Xie, Haonan & Zhang, Dongdong & Dai, Wei & Kurniawan, Tonni Agustiono & Wong, Shen Yuong & Goh, Kai Chen, 2025. "Sustainable development through the balancing of photovoltaic charging facilities and agriculture for energy harvesting," Applied Energy, Elsevier, vol. 377(PA).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • R49 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Other

    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:hal:journl:halshs-04208462. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.