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Charged Up: The Effect of Charging Infrastructure on the Uptake of Electric Vehicles

Drawing on a panel of high-resolution data from Germany, this paper estimates the relationship between charging infrastructure and the uptake of electric vehicles (EVs). We specify models with fixed effects or a lagged dependent variable to gauge the robustness of our findings in the face of alternative channels through which endogeneity bias may emerge. Our models distinguish between battery-powered EVs and plug-in hybrids. We find that for the former, charging infrastructure has a statistically significant and economically relevant impact on uptake. A back-of-the-envelope calculation using these results points to a higher cost-effectiveness of expanded charging infrastructure relative to an ongoing subsidy program for the purchase of EVs.