Governmental platform intermediation to promote alternative fuel vehicles

Antje-Mareike Dietrich

No 16, Economics Department Working Paper Series from Technische Universität Braunschweig, Economics Department

Abstract: Many governments promote green technological innovation within the automobile sector as a means of combating climate change. Most of these innovations are driven by alternative fuels. Buyer's premiums and governmental investment in service infrastructure are widely used. This paper investigates the question regarding whether market intervention is adequate by considering the two-sided market character of the automobile market. This study shows that network effects, competition effects triggered by more automobile users and decreasing marginal utilities of further service stations determine the welfare-efficient extent of governmental intervention. The results of the analysis indicate that governmental promotion of service infrastructure is reasonable, although governments should be cautious about buyer's premiums.

Keywords: network effects; two-sided markets; platform intermediation; alternative fuel vehicles; climate change; regulation (search for similar items in EconPapers)
JEL-codes: L15 L92 L98 O33 Q55 Q58 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-ene, nep-env, nep-ger, nep-ino, nep-reg and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:tbswps:16

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