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Ruhr Economic Papers #1214

2026

Omar Martin Fieles-Ahmad, Michael Kvasnicka, Victor Libet

War, Oil, and the Demand for Electric Cars

We study whether the sharp rise in petrol prices following the bombing of Iran on 28 February 2026 affected the short-run demand for battery electric vehicles in EU-27 countries. Using monthly vehicle-registration data and fixed-effects panel regressions, we show that the petrol-price shock increased battery electric-vehicle adoption, in particular in countries with better charging infrastructure and lower charging costs. Our findings suggest that higher fossil-fuel prices can accelerate the transition towards electric mobility.

ISBN: 978-3-96973-399-8

JEL-Klassifikation: D12, Q42, L91, R40

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