Author, as appears in the article.: Theilen, B; Tomori, F
Department: Economia
URV's Author/s: Theilen, Bernd Georg / Tomori, Françeska
Keywords: Subsidy scheme Innovation Fuel-powered vehicles Environmental regulation Emission standards Electric vehicles Commitment
Abstract: We compare two regulatory structures in the application of emission standards and a subsidy scheme in the automobile market. The regulator can either commit to an emission standard or is not able to commit. Firms compete á la Cournot and produce fuel-powered and electric vehicles. The emissions of fuel-powered vehicles can be abated by means of investing in emission-reducing innovation. Our results indicate that under commitment there are less emissions, higher subsidies and a major adoption of electric vehicles. By contrast, non-commitment yields more fuel-powered vehicles, more vehicles in total and higher consumer surplus. Electric vehicle producers obtain higher profits under commitment, whereas fuel-powered vehicle producers might be better off under both regulatory structures. Social welfare is higher under non-commitment as long as environmental damages are regarded severe. Otherwise, commitment is socially preferable. This result provides an explanation for observed differences in the duration of environmental standards between the US, the EU and China.
Thematic Areas: General o multidisciplinar Environmental studies Economics and econometrics Economics Economia Ciencias sociales
licence for use: https://creativecommons.org/licenses/by/3.0/es/
Author's mail: franceska.tomori@urv.cat franceska.tomori@urv.cat bernd.theilen@urv.cat
Author identifier: 0000-0002-6744-3100 0000-0002-6744-3100 0000-0001-7141-2780
Record's date: 2024-08-03
Papper version: info:eu-repo/semantics/publishedVersion
Licence document URL: https://repositori.urv.cat/ca/proteccio-de-dades/
Papper original source: Resource And Energy Economics. 74
APA: Theilen, B; Tomori, F (2023). Regulatory commitment versus non-commitment: Electric vehicle adoption under subsidies and emission standards. Resource And Energy Economics, 74(), -. DOI: 10.1016/j.reseneeco.2023.101388
Article's DOI: 10.1016/j.reseneeco.2023.101388
Entity: Universitat Rovira i Virgili
Journal publication year: 2023
Publication Type: Journal Publications
Repositori URV