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What Does an Electric Vehicle Replace?

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  • Leard, Benjamin

    (Resources for the Future)

  • Li, Shanjun

    (Resources for the Future)

  • Xing, Jianwei

Abstract

We estimate a discrete choice model of new vehicle demand, which includes all gasoline and electric vehicle models available in the U.S. market from 2010 to 2014.We simulate a counterfactual marketplace in 2014 that does not include electric vehicles to assess which vehicles are being replaced by electric vehicles.We find that electric vehicles are replacing relatively fuel-efficient gasoline vehicles that get an average 4.2 miles per gallon more fuel economy than the average gasoline vehicle.We also simulate alternative electric vehicle subsidy designs, finding that subsidies targeted toward low and middle income households can be more equitable and more cost-effective than the current uniform federal subsidy.

Suggested Citation

  • Leard, Benjamin & Li, Shanjun & Xing, Jianwei, 2019. "What Does an Electric Vehicle Replace?," RFF Working Paper Series 19-05, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-19-05
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    File URL: https://www.rff.org/documents/2003/WP_19-05_Leard.pdf
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    References listed on IDEAS

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    2. Haobing Liu & Daejin Kim & Hanyan Li & Michael O. Rodgers & Randall Guensler, 2024. "Synthetic control methods for estimating the effect of purchase incentives on plug-in electric vehicles sales in the United States," Transportation, Springer, vol. 51(4), pages 1209-1238, August.

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