Energy Economics & Finance Seminar
If you are interested in attending, please contact:
Arthur van Benthem (email@example.com)
- Jing LiMIT Sloan
Compatibility and Investment in the U.S. Electric Vehicle Market
Competing standards often proliferate in the early years of product markets, potentially leading to socially inefficient investment. This paper studies the effect of compatibility in the U.S. electric vehicle market, which has grown ten-fold in its first five years but has three incompatible standards for charging stations. I develop and estimate a structural model of consumer vehicle choice and car manufacturer investment that demonstrates the ambiguous impact of mandating compatibility standards on market outcomes and welfare. Compatibility may benefit consumers by providing access to all existing charging stations. However, firms may cut back on their investments because the benefits from one firm's investments spill over to rivals. Firm response in investment may erode consumer gains from compatibility. I estimate my model using U.S. data from 2011 to 2015 on vehicle registrations and charging station investment and identify demand elasticities with variation in federal and state subsidy policies. Counterfactual simulations show that mandating compatibility in charging standards would decrease duplicative investment in charging stations by car manufacturers and increase the size of the electric vehicle market.
This seminar series in Energy Economics & Finance (EEF) is organized by Arthur van Benthem and hosted by the Kleinman Center.
The scope of the seminar includes regulation and policy papers. The scope of the seminar also includes environmental and transportation issues, as long as there is a connection with energy. Sessions are biweekly on Wednesdays (see dates below) from 4:00 p.m. – 5:00 p.m in the Kleinman Center classroom—Fisher Fine Arts Room 306.
Beer, wine, and snacks are served! For more information or to attend a session, please contact Arthur van Benthem (firstname.lastname@example.org).
Spring 2018 Schedule
- 1/31: Jesse Jenkins (MIT)
3/14: Akshaya Jha (CMU Heinz)
3/28: Erik Gilje (Wharton)
4/11: Ashley Vissing (Chicago Economics)
4/25: Jing Li (MIT Sloan)
5/2: Arthur van Benthem (Wharton)
5/9: Christina Simeone & Thomas Lee (Kleinman Center)