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Daily Digest for
November 02, 2024
DP19639 Adjustable product attributes, indirect network effects, and subsidy design: The case of electric vehicles
A study on the German EV market examines how subsidies affect electric vehicle sales, prices, and driving range. The research finds that while subsidies can significantly boost EV sales, they create trade-offs between different policy objectives, with charging station subsidies maximizing consumer surplus while purchase subsidies maximize sales.