Fueling electrification: The impact of gas prices on hybrid car usage

Grigolon, Laura ; Park, Eunsung ; Remmy, Kevin

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URN:	urn:nbn:de:bsz:180-madoc-675149
Document Type:	Working paper
Year of publication:	2024
The title of a journal, publication series:	ZEW Discussion Papers
Volume:	24-017
Place of publication:	Mannheim
Publication language:	English
Institution:	Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung School of Law and Economics > Sonstige - Fakultät für Rechtswissenschaft und Volkswirtschaftslehre School of Law and Economics > VWL, Mikroökonomik (Juniorprofessur) (Grigolon 2018-) Außerfakultäre Einrichtungen > Graduate School of Economic and Social Sciences - CDSE (Economics)
MADOC publication series:	Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject:	330 Economics
Classification:	JEL: D12 , L91 , Q31,
Keywords (English):	fuel price elasticity , automobiles , carbon emissions
Abstract:	We use micro-level data on fuel consumption, mileage, and travel mode to study plug-in hybrid drivers’ response to fuel prices. When fuel prices rise, plug-in hybrids reduce fuel consumption more than gasoline and diesel cars. They do not reduce their mileage but increase electric recharging, without evidence of habit formation. As the share of kilometers driven in electric mode by plug-in hybrids is only half the official test cycle value, fuel prices are effective in improving the environmental performance of these vehicles. We estimate drivers’ value of charging time at €15 to €41/hour