Technology Adoption and Critical Mass: The Case of the U.S. Electric Vehicle Market

58 Pages Posted: 31 Oct 2018

See all articles by Yiyi Zhou

Yiyi Zhou

Stony Brook University

Shanjun Li

Cornell University - School of Applied Economics and Management

Multiple version iconThere are 3 versions of this paper

Date Written: June 2018

Abstract

The interdependence between electric vehicle (EV) adoption and charging station deployment could lead to multiple equilibria. Under certain market conditions, the issue of critical mass arises and a market failing to overcome this hurdle would revert to a no‐adoption outcome. Using panel data of EV sales and charging stations across U.S. Metropolitan Statistical Areas (MSA's), we find that more than half of the MSA's face critical mass constraints and that a subsidy policy targeting these critical‐mass constrained MSA's could be much more effective in promoting EV adoption than the current uniform policy.

Suggested Citation

Zhou, Yiyi and Li, Shanjun, Technology Adoption and Critical Mass: The Case of the U.S. Electric Vehicle Market (June 2018). The Journal of Industrial Economics, Vol. 66, Issue 2, pp. 423-480, 2018. Available at SSRN: https://ssrn.com/abstract=3275629 or http://dx.doi.org/10.1111/joie.12176

Yiyi Zhou (Contact Author)

Stony Brook University ( email )

Shanjun Li

Cornell University - School of Applied Economics and Management ( email )

248 Warren Hall
Ithaca, NY 14853
United States

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