Attribute substitution in household vehicle portfolios

Archsmith, James; Gillingham, Kenneth; Knittel, Christopher R.; Rapson, David

doi:10.1111/1756-2171.12353

Cited by 19 publications

(7 citation statements)

References 46 publications

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“…First, EVs are heavier than ICEs, which increases the fatality risk from collisions (Shaffer et al 2021). There is also growing evidence of portfolio effects within households (Archsmith et al (2020)) that may cause EVs households to purchase larger vehicles in an attempt to diversify the portfolio of vehicles owned.…”

Section: Congestion and Accidentsmentioning

confidence: 99%

The Economics of Electric Vehicles

Rapson¹,

Muehlegger²

2021

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We examine the private and public economics of electric vehicles (EVs) and discuss when market forces will produce the optimal path of EV adoption. Privately, consumer cost savings from EVs vary. Some experience net benefits from choosing gasoline cars, even after accounting for EV subsidies. Publicly, we survey the literature documenting the external costs and benefits of EVs and highlight several themes for optimal policy design including, 1) promoting regional variation in EV policies that align private incentives with social benefits, 2) pursuing a time-path of policies that reflect changing marginal benefits, and 3) rationalizing electricity and gasoline prices to reflect their social marginal cost. On the extensive margin, purchase incentives should ramp-down as learning-by-doing and network externalities (to the extent that they exist) diminish; on the intensive margin, gasoline should become relatively more expensive over time than electricity (per mile traveled) to reflect cleaner marginal emissions from electricity generation.

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Section: Congestion and Accidentsmentioning

confidence: 99%

The Economics of Electric Vehicles

Rapson¹,

Muehlegger²

2021

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“…The downward slopes in Panel E imply that older vehicles drive fewer annual miles. This may occur because most households prefer to drive the newer of two vehicles (Archsmith et al 2020) or because the households that own older vehicles have lower driving demand.…”

Section: Discussion: Effects Of Exhaust Standards On Emission Ratesmentioning

confidence: 99%

Regulating Untaxable Externalities: Are Vehicle Air Pollution Standards Effective and Efficient?

Jacobsen

Sallee

Shapiro

et al. 2023

The Quarterly Journal of Economics

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The world has 1.4 billion passenger vehicles. How should governments regulate their air pollution emissions? A Pigouvian tax is technologically infeasible. Most countries instead rely on exhaust standards that limit air pollution emissions per mile for new vehicles. We assess the effectiveness and efficiency of these standards, which are the centerpiece of US Clean Air Act regulation of transportation, and counterfactual policies. We show that the air pollution emissions per mile of new US vehicles has fallen spectacularly, by over 99 percent, since standards began in 1967. Several research designs with a half century of data suggest that exhaust standards have caused most of this decline. Yet exhaust standards are not cost-effective in part because they fail to encourage scrap of older vehicles, which account for the majority of emissions. To study counterfactual policies, we develop an analytical and a quantitative model of the vehicle fleet. Analysis of these models suggests that tighter exhaust standards increase social welfare and that increasing registration fees on dirty vehicles yields even larger gains by accelerating scrap, though both reforms have complex effects on inequality.

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“…Our work contributes to the broad literature on product complementarities, which has long received attention in economic literature (Hicks and Allen, 1934;Samuelson, 1974). There is also a large related empirical literature allowing for products with interrelated demand (Train et al, 1987;Archsmith et al, 2020;Gentzkow, 2007). Our paper more specifically relates to growing literature on the demand for accessory goods (Liu et al, 2018;Sharma and Mehra, 2021).…”

Section: Introductionmentioning

confidence: 91%

Valuing Technology Complementarities: Rooftop Solar and Energy Storage

Bollinger,

Darghouth,

Gillingham

et al. 2024

SSRN Journal

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Attribute substitution in household vehicle portfolios

Cited by 19 publications

References 46 publications

The Economics of Electric Vehicles

The Economics of Electric Vehicles

Regulating Untaxable Externalities: Are Vehicle Air Pollution Standards Effective and Efficient?

Valuing Technology Complementarities: Rooftop Solar and Energy Storage

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