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Prospects for the Development of the Electric Transport Market

Student: Levashkin Dmitrii

Supervisor: Dmitry V. Levando

Faculty: International College of Economics and Finance

Educational Programme: Double degree programme in Economics of the NRU HSE and the University of London (Bachelor)

Year of Graduation: 2018

In this work we looked at the electric vehicles industry to learn the key relations between the existing transport industry and the new developing industry. We used publicly available data on the stock of electric vehicles, data on demographic statistics and prices of resources for both types of vehicles. After modeling a set of regressions, we got significant results which allow us to conclude that there exists some evidence for the process of replacement of traditional transportation vehicles for electric vehicles which were introduced over a decade ago. This conclusion is based on the premise that there is a substitution effect which arises from disproportion of prices of electricity and traditional gasoline. Keeping in mind the assumption that due to decreasing cost of production in the sphere of electricity will eventually cause a decrease in costs of recharging of electric vehicle, one may conclude that the initial hypothesis was approved by this analysis.

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