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War, oil, and the demand for electric cars

Author

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  • Fieles-Ahmad, Omar Martin
  • Kvasnicka, Michael
  • Libet, Victor

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

  • Fieles-Ahmad, Omar Martin & Kvasnicka, Michael & Libet, Victor, 2026. "War, oil, and the demand for electric cars," Ruhr Economic Papers 1214, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:342546
    DOI: 10.4419/96973399
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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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