Adjustable Product Attributes, Indirect Network Effects, and Subsidy Design: The Case of Electric Vehicles

• 成果类型: Article
• 署名作者: Remmy, Kevin
• 署名单位: University of Mannheim; Centre for Economic Policy Research - UK
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20230294
• 发表日期: 2026
• 关键词: pass-through; monopoly; QUALITY; MARKETS; price; cost; adoption; demand

摘要

This paper develops a structural model of endogenous product attribute choice in the presence of indirect network effects to study electric vehicle (EV) subsidies. Using data on the German EV market, I find that a support scheme almost doubled EV sales but substantially affected EVs' price and driving range. These adjustments create a trade-off between optimizing different policy objectives when designing subsidies. Large purchase subsidies maximize EV sales, whereas large charging station subsidies maximize consumer and total surplus. The results suggest that maximizing EV sales can lead to unintended consequences in the form of price and range adjustments.