Transport policies in a two-sided market

Decarbonizing the transport sector is a key measure to reduce carbon emissions at the global level. This result relies, among other factors, on the substitution of gasoline vehicles with electric vehicles. Countries such as Norway and Germany have adopted policies favoring the diffusion of electric vehicles. The success of such policies depends, however, on an adequate charging infrastructure. We therefore develop a two-sided market model that captures the network externalities between electric vehicles and charging stations. A platform provides, on one side of the market, electric and gasoline vehicles to consumers; on the other side, it supplies retailers with charging stations. This framework is used to study policies tackling different sides of the market. The main findings of the paper