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Development of Charging Infrastructure and Subsidies for Promoting Electric Vehicles
Department of Social Information Studies, Otsuma Women’s University, Tokyo, Japan
- 1 Department of Social Information Studies, Otsuma Women’s University, Tokyo, Japan
Theoretical Economics Letters·Volume 08 (2018)·Pages 2006–2023·Published 20 July 2018·DOI10.4236/tel.2018.811131
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Abstract
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.
KeywordsElectric VehiclesCharging InfrastructureInnovationsSubsidiesMultiple-Period Models
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