Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
Please note that all times are shown in the time zone of the conference. The current conference time is: 24th Aug 2026, 01:48:39am WEST
External resources will be made available 30 min before a session starts. You may have to reload the page to access the resources.
|
Daily Overview |
| Session | |
|
Environmental Policy 1 Location: B128 Session Chair: Manuel Estay, Universidad de Concepción | |
    | |
Subsidizing EVs: the role of vertical and horizontal preferences 1: Laboratoire Aménagement Economie Transport (LAET); 2: Pontificia Universidad Católica (PUC) de Chile; 3: Université Paris-Est Créteil (UPEC) While subsidies for new electric vehicles (EVs) are widely implemented, the recent introduction of subsidies for second-hand EVs in several countries raises questions about their economic justification. We develop a theoretical model that incorporates both vertical (vintage) and horizontal (fuel-type) differentiation in consumer preferences to analyze the efficiency of various policy instruments. We show that: (i) subsidies cannot replicate the efficient outcome of a Pigouvian tax, contrary to conventional wisdom; (ii) subsidies for new and second-hand EVs act as complements rather than substitutes in accelerating fleet decarbonization; and (iii) subsidies for new EVs should decline over time as the second-hand market develops. Using city-level data from the 2019 and 2021 French car fleet and a random coefficient logit model, we estimate consumer preferences and find a strong inclination toward newer models but limited substitution across fuel types. We run counterfactual analysis to quantify the fleet and welfare outcomes of different policy scenarios. Our findings support the theoretical propositions. | |