SMU SOE Seminar (February 23, 2024, 10am-11.30am): Industrial Policies for Multi-stage Production: The Battle for Battery-driven Vehicles

Please click here if you are unable to view this page.

TOPIC:

INDUSTRIAL POLICIES FOR MULTI-STAGE PRODUCTION: THE BATTLE FOR BATTERY-DRIVEN VEHICLES

ABSTRACT Many countries have set ambitious targets for transitioning away from fossil fuels. The plans generally involve switching from combustion engines to electric vehicles (EVs). Batteries constitute around 40% of the cost of EVs, so efficient supply chains for batteries are important for holding down the cost of EVs to consumers. However, many governments use tax and subsidy schemes to alter the locations chosen for each stage of the supply chain. We specify a five-stage supply chain for EVs from battery cell production to vehicle distribution. Each lead firm selects where to open facilities at each stage. Constrained by these options each EV model makes a sourcing decision at each production stage. We estimate the variable cost parameters using observed sourcing decisions over the period 2015 to 2022. Moments on the active plants are then matched to the simulated model to infer fixed costs of activating plants. The next step is a set of counterfactuals that compute how policy interventions affect the final pattern of production and trade in this sector. Ultimately, we plan to use the model to quantify the impact of competing industrial policies on global CO2 emissions. Click here to view the CV.
		PRESENTER Keith Head The University of British Columbia
		RESEARCH FIELDS International Trade
		DATE: 23 February 2024 (Friday)
		TIME: 10am - 11.30am
		VENUE: Meeting Room 5.1, Level 5 School of Economics Singapore Management University 90 Stamford Road Singapore 178903

© Copyright 2024 by Singapore Management University. All Rights Reserved.