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War, Oil, and the Demand for Electric Cars

Author

Listed:
  • Omar Martin Fieles-Ahmad
  • Michael Kvasnica

    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

  • Victor Libet

Abstract

We study whether the sharp rise in petrol prices following the bombing of Iran on 28 February 2026 affected the short-run demand for battery electric vehicles in EU-27 countries. Using monthly vehicle-registration data and fixed-effects panel regressions, we show that the petrol-price shock increased battery electric-vehicle adoption, in particular in countries with better charging infrastructure and lower charging costs. Our findings suggest that higher fossil-fuel prices can accelerate the transition towards electric mobility.

Suggested Citation

  • Omar Martin Fieles-Ahmad & Michael Kvasnica & Victor Libet, 2026. "War, Oil, and the Demand for Electric Cars," FEMM Working Papers 26012, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    • Handle: RePEc:mag:wpaper:26012
    as

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    File URL: https://www.fww.ovgu.de/fww_media/femm/femm_2026/2026_12.pdf
    File Function: First version, 2011
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    More about this item

    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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