Welcome to our new PhD Students! Three new PhD students joined us in the academic year 22/23. We are happy to welcome Lucas Konrad, Anne Valder and Lukas Pirnbacher (pictured left to right) to our PhD Economics Program.
PhD student Francesco Scarazzato together with co-authors Nicolas Koch, Nolan Ritter and Alexander Rohlf published a new paper titled "When is the electric vehicle market self-sustaining? Evidence from Norway"
This paper investigates whether the world’s most mature electric vehicle (EV) market in Norway has overcome critical mass constraints and can achieve sustainable long-term equilibria without subsidies. The authors estimate a structural model that allows for multiple equilibria emerging from the interdependence between EV demand and charging station supply. They first estimate the resulting indirect network effects using an instrumental variable approach. Then, they simulate long-term market outcomes for each of the 422 Norwegian municipalities. They find that almost 20% of all municipalities faced critical mass constraints in the earliest stage of the market. Half of them are effectively trapped in a zero-adoption equilibrium. However, in the maturing market, all municipalities have passed critical mass. Overall, about 60% of the Norwegian population now lives in municipalities with a high-adoption equilibrium, even if subsidies were removed. This suggests that critical mass constraints do no longer justify the provision of subsidies