Authors
Hunt Allcott, Reigner Kane, Maximilian S. Maydanchik, Joseph S. Shapiro, Felix Tintelnot
- Acknowledgements & Disclosure
- We thank Rishab Mohan and Jiawei Yang for exceptional research assistance. We thank Michael Anderson, Kirill Borusyak, Allan Collard-Wexler, Jonathan Dingel, James Heckman, Marc Melitz, Steve Redding, Andrés Rodríguez-Clare, Jonathan Smoke, and Catherine Wolfram as well as our discussants Lydia Cox, Keith Head, and Rich Sweeney for helpful comments and discussions. We acknowledge use of ChatGPT to proofread grammar. We are grateful to the Becker Friedman Institute at the University of Chicago and NSF grant SES-2117158 and SES-2214949 for research support. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
- DOI
- https://doi.org/10.3386/w33032
- Pages
- 84
- Published in
- United States of America
Table of Contents
- Introduction 3
- Policy Background 8
- Electric Vehicle Markets 8
- Clean Vehicle Credits 9
- Data 10
- Main Datasets 10
- Descriptive Facts 13
- Event Studies Around Credit Eligibility Changes 16
- Methodology 16
- Purchase Prices and Economic Incidence 17
- Relative Lease Prices 18
- Lease Shares 19
- Equilibrium Model 20
- Model Setup 20
- Estimation Procedure, Calibration, and Results 23
- Welfare and Measures of Policy Effectiveness 24
- Constrained Optimal Policy 26
- Effects of Counterfactual Policies 29
- Results: Repeal of IRA EV Credits and Modification of Trade Restrictions 29
- Results: Optimal Policies 32
- Conclusion 35
- Online Appendix 57
- Data Appendix 58
- Externalities 60
- Dealership Inventory Survey 61
- Descriptive Facts Appendix 65
- Texas Registration Data Analysis 67
- Event Study Appendix 67
- Event Study Regression Tables 67
- Doubly-Robust Event Studies 70
- Event Studies with Registration Quantities 71
- Equilibrium Model 74
- Quantity Demanded and Consumer Surplus 74
- Estimation 75
- Sensitivity Analysis 78
- Analytical Model Appendix 81
- First-Best 81
- Second Best Differentiated Subsidy 81
- Second Best Uniform Subsidy 83