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Innovation in Electric and Hybrid Vehicle Technologies: The Role of Prices, Standards and R&D

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Policy instruments are often introduced in combination, sometimes with different but related environmental objectives. In this chapter, the relative importance of fleet‐level fuel‐efficiency standards, after‐tax fuel prices, and public support for R&D is examined using data on patenting activity in alternative‐fuelled vehicles. It is found that relatively minor changes in a performance standard or automotive fuel prices would yield effects that are equivalent to a much greater proportional increase in public R&D budgets. However, there are significant differences between types of technologies ‐ electric and hybrid vehicles. Our results suggest that appropriate sequencing of policy measures is important.

Document Type: Review Article

Publication date: September 1, 2011


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