Decarbonizing transport is crucial to achieving net-zero emissions, with private cars contributing significantly to greenhouse gas emissions. While subsidies for new electric vehicles (EVs) are common, the recent inclusion of second-hand EV subsidies in several countries raises questions about their economic rationale. Contrary to conventional thinking, we show that while subsidies for second-hand EVs are often justified on equity grounds, they also improve efficiency as they influence the equilibrium composition of the vehicle fleet. Using a theoretical model that incorporates both vertical (vintage) and horizontal (fuel type) differentiation, along with empirical evidence from the French car market, we demonstrate that subsidies for new and second-hand EVs function as complements. By employing both types of subsidies and adjusting them over time, policymakers can achieve substantial welfare gains compared to focusing solely on new EVs.
Ce séminaire porte sur la finance solidaire et la finance à impact qui sont considérées comme des modes de financement alternatifs ou complémentaires aux circuits financiers traditionnels. Il interroge en particulier l’évolution de ces deux types de finances au regard de leurs objectifs affichés, étant donné leur essor important depuis une quinzaine d’années.
This one-day workshop brings together researchers working on the design, evaluation, and impact of climate policies aimed at fostering the development and diffusion of low-carbon technologies. The presentations will cover a range of topics including the regulation of urban transport emissions, the integration of carbon dioxide removal into energy markets, the strategic adoption of...