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Evaluating CO2 reduction policy portfolios in the automotive sector

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  • van der Vooren

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  • Eric Brouillat

Abstract

This paper presents an agent-based model that simulates the market for passenger cars in which firm strategies, market structure, consumer choices and policy instruments co-evolve. The main contribution of the paper is to show that this type of simulation model can be used to explore interactions and additional effects when different policy measures are combined to reduce CO2 emissions. We show the impact of policy portfolios on economic and technological decisions of firms, on consumer choice and on global CO2 emissions. In particular, we show how the dynamics of the system can lead to a technological lock-in into internal combustion technologies and demonstrate the ways in which policy instruments can help to break this lock-in. We show that policy portfolios can be relevant to achieve the best of different stand-alone policy measures, but not necessarily. Ex ante evaluation is therefore recommended.

Suggested Citation

  • van der Vooren & Eric Brouillat, 2013. "Evaluating CO2 reduction policy portfolios in the automotive sector," Innovation Studies Utrecht (ISU) working paper series 13-01, Utrecht University, Department of Innovation Studies, revised Feb 2013.
  • Handle: RePEc:uis:wpaper:1301
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    File URL: http://www.geo.uu.nl/isu/pdf/isu1301.pdf
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    References listed on IDEAS

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    Cited by:

    1. Harrison, Gillian & Thiel, Christian, 2017. "An exploratory policy analysis of electric vehicle sales competition and sensitivity to infrastructure in Europe," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 165-178.
    2. Arfaoui, Nabila & Brouillat, Eric & Saint Jean, Maïder, 2014. "Policy design and technological substitution: Investigating the REACH regulation in an agent-based model," Ecological Economics, Elsevier, vol. 107(C), pages 347-365.
    3. repec:eee:enepol:v:110:y:2017:i:c:p:447-460 is not listed on IDEAS

    More about this item

    Keywords

    agent-based simulation; CO2 emissions; low emission vehicle technologies; policy portfolio; technological change; transition;

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