Development of Charging Infrastructure and Subsidies for Promoting Electric Vehicles ()
ABSTRACT
This paper clarifies an effect of policy on the
development of charging infrastructure and subsidies for promoting electric
vehicles (EVs). Due to the long-term function of charging infrastructure, this
paper constructs a multiple-period model to analyze policy effects on the
diffusion of EVs from a long-term perspective. This paper shows that charging infrastructure
and subsidy encourage innovation on increasing the battery capacity of EVs.
Because intertemporal cost allocation can be executed in the development of a
charging infrastructure with a subsidy, a policy with a long-term perspective
can enhance the charging infrastructure and promote EVs effectively.
Share and Cite:
Arakawa, K. (2018) Development of Charging Infrastructure and Subsidies for Promoting Electric Vehicles.
Theoretical Economics Letters,
8, 2006-2023. doi:
10.4236/tel.2018.811131.