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Optimal policies for electromobility: Joint assessment of transport and electricity distribution costs in Norway

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  • Wangsness, Paal Brevik
  • Proost, Stef
  • Rødseth, Kenneth Løvold

Abstract

This paper develops a stylized economic model for passenger transport in the greater Oslo area, in which the agents' choices of car ownership, transport pattern, and electric vehicle (EV) charging are jointly determined. If enough EVs charge during peak hours, costly grid expansions may be needed. We examine how the distribution system operators can mitigate these costs with different pricing schemes and how this, in turn, affects the transport market equilibrium. We find that applying tariffs differentiated between peak and off-peak periods will help strike a better balance between grid investment costs and EV-owners’ disutility of charging during off-peak hours.

Suggested Citation

  • Wangsness, Paal Brevik & Proost, Stef & Rødseth, Kenneth Løvold, 2021. "Optimal policies for electromobility: Joint assessment of transport and electricity distribution costs in Norway," Utilities Policy, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:juipol:v:72:y:2021:i:c:s0957178721000813
    DOI: 10.1016/j.jup.2021.101247
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    1. Nathasit Gerdsri & Komkrit Sivara & Chayoot Chatunawarat & Somnuek Jaroonjitsathian & Krissada Tundulyasaree, 2022. "Roadmap for Future Mobility Development Supporting Bangkok Urban Living in 2030," Sustainability, MDPI, vol. 14(15), pages 1-19, July.
    2. Gunkel, Philipp Andreas & Bergaentzlé, Claire-Marie & Keles, Dogan & Scheller, Fabian & Jacobsen, Henrik Klinge, 2023. "Grid tariff designs to address electrification and their allocative impacts," Utilities Policy, Elsevier, vol. 85(C).
    3. Roman Chinoracky & Natalia Stalmasekova & Tatiana Corejova, 2022. "Trends in the Field of Electromobility—From the Perspective of Market Characteristics and Value-Added Services: Literature Review," Energies, MDPI, vol. 15(17), pages 1-19, August.

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    More about this item

    Keywords

    Electric vehicles; Climate policy; Electricity distribution costs;
    All these keywords.

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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