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Market competition and the adoption of clean technology: evidence from the taxi industry

WPnull/22 Market competition and the adoption of clean technology: evidence from the taxi industry
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Abstract
Does market competition increase firms' willingness to adopt green technologies? We exploit the rollout of ride-hailing platforms across Spain as a quasi-experiment that provides time and city-specific exogenous variation in the intensity of competition to study the impact on taxi drivers' vehicle choices. The entry of these platforms significantly increased the uptake of green vehicles among drivers in incumbent taxi companies, while maintaining or decreasing that of dirty ones. The opposite effect is observed in the cities where these platforms were unlikely to enter. These results speak directly to the recent debate on whether competition policies should be relaxed to achieve environmental targets.

Classification JEL:D22, K32, L20, O30, O33, Q55, R11

Keywords:Technological change; Green technology adoption; Market competition; Diffusion of technology; Environmental externalities.

Number of Pages:48

Creation Date:2022-02-07

Number:null/22

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Raúl Bajo

Raúl Bajo

Campus Universitario

31009 Pamplona, España

+34 948 42 56 00

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