Author: Kiyoshi Arakawa
This paper clarifies an effect of policy on the development of charging infrastructure and subsidies for promoting electric vehicles (EVs). Due to the long-term function of charging infrastructure, this paper constructs a multiple-period model to analyze policy effects on the diffusion of EVs from a long-term perspective. This paper shows that charging infrastructure and subsidy encourage innovation on increasing the battery capacity of EVs. Because intertemporal cost allocation can be executed in the development of a charging infrastructure with a subsidy, a policy with a long-term perspective can enhance the charging infrastructure and promote EVs effectively.
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