Abstract
We present a novel methodology to integrate heterogeneous micro-founded preferences into a dynamic computable general equilibrium model. This integrated model is linked to a bottom-up technology-rich electricity model and a stock-flow vehicle accounting model to quantify the social costs of electric vehicles as an endogenous, demand-driven abatement technology. Emission abatement is achieved through consumer choices that are recognised as a central driver of endogenous technological change. Endogenously determined emissions from vehicle use, electricity generation, and production provide an input to quantify external costs attributable to air quality and carbon emissions. We find that carbon and vehicle registration tax policies induce a significant shift away from conventional vehicles towards electric vehicles in Austria by 2030. The shift to electric vehicles results in small overall economic costs, a substantial decline in fuel demand that exceeds the increase in electricity demand to charge vehicle batteries, and overall positive net environmental benefits.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.