Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/235344
Year of Publication: 
2021
Series/Report no.: 
CESifo Working Paper No. 8974
Publisher: 
Center for Economic Studies and Ifo Institute (CESifo), Munich
Abstract: 
Will a carbon tax improve the welfare consequences of policies to promote electric vehicles? This paper examines when a complementarity could exist between carbon pricing and high electric vehicle adoption. We analyze electricity generation in recent years to show that in several regions, carbon pricing interacts with electric vehicle adoption. Under moderate carbon prices like those in effect today, additional electric vehicles will be more likely to be charged with coal-fired generation than without carbon pricing. We confirm this finding using a detailed dynamic model that includes the transportation and power sectors. At much higher carbon prices, the effect reverses.
Subjects: 
electric vehicles
carbon pricing
interacting regulations
air pollution
JEL: 
H23
Q48
Q53
Q54
Q58
R48
Document Type: 
Working Paper
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