Abstract

Electric Vehicles are an increasingly accepted form of transport in the passenger- vehicles market due to increasing environmental awareness. Conventional gasoline vehicles are a leading source of air-pollution across the globe, and governments as well as a large number of consumers believe that electric vehicles are a temporary solution to the harmful levels of tail-pipe emissions. In order to promote the adoption of this technology, governments in a number of countries introduce policies which promote this technology by offering subsidies, and other benefits to consumers. This study simulates the effect of subsidies on the market-share of electric vehicles in the U.S passenger-vehicle sector using Monte-Carlo simulations in a game-theory duopoly framework, and constant-returns Cobb-Douglas production functions. We find that using per-unit price subsidies increases the market share of electric-vehicles in the U.S passenger vehicle sector.

Advisor

Moledina, Amyaz

Second Advisor

Visa, Sofia

Department

Economics; Computer Science

Disciplines

Other Economics | Theory and Algorithms

Keywords

Subsidies, EV, Electric-Vehicle, Monte-Carlo, Computer Science

Publication Date

2020

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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© Copyright 2020 Yash Bajaj