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.
Economics; Computer Science
Bajaj, Yash, "Using Monte Carlo Simulations to Study the Effects of Subsidies on the Market-Share of Electric-Vehicles" (2020). Senior Independent Study Theses. Paper 8919.
Other Economics | Theory and Algorithms
Subsidies, EV, Electric-Vehicle, Monte-Carlo, Computer Science
Bachelor of Arts
Senior Independent Study Thesis
© Copyright 2020 Yash Bajaj