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The chicken-and-egg problem of electric cars

Remmy, Kevin (2022) The chicken-and-egg problem of electric cars. LSE Business Review (21 Sep 2022). Blog Entry.

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For consumers to adopt electric cars widely, a network of charging stations must be present. However, the development of charging stations is also dependent on the wide circulation of electric cars. Additionally, consumers worry about the tendency for electric vehicles to have a lower driving range than traditional cars. Kevin Remmy built an empirical framework that models consumers’ new car purchase decisions, car producers’ price and range decisions, and charging station entry. He writes that policymakers must understand strategic price and range reactions to subsidies and how they interact with indirect network effects.

Item Type: Online resource (Blog Entry)
Official URL:
Additional Information: © 2022 The Author(s)
Divisions: LSE
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HE Transportation and Communications
Date Deposited: 17 Nov 2022 14:36
Last Modified: 16 May 2024 10:44

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