OxTalks is Changing
Oxford Events, the new replacement for OxTalks, will launch on 16th March. From now until the launch of Oxford Events, new events cannot be published or edited on OxTalks while all existing records are migrated to the new platform. The existing OxTalks site will remain available to view during this period.
From 16th, Oxford Events will launch on a new website: events.ox.ac.uk, and event submissions will resume. You will need a Halo login to submit events. Full details are available on the Staff Gateway.
Industrial Policies for Multi-stage Production: The Battle for Battery-powered Vehicles
Many countries have implemented policies to promote transition from combustion engines to electric vehicles (EVs). As batteries constitute about one third of the cost of EVs, firms need to establish low-cost battery supply chains in order to make EVs attractive to consumers. At the same time, governments increasingly use tax and subsidy schemes to induce firms to place more stages of the supply chain within their jurisdictions. We specify a multi-stage supply chain for EVs from battery cell production to vehicle distribution. Each car producer selects where to open facilities at each stage considering production costs, trade costs, and subsidies. This is a difficult combinatorial choice problem that cannot be solved using existing “squeezing’‘ algorithms that have been used in the recent literature analyzing global supply chain location choices. Instead, we use a mixed integer linear program formulation that drastically reduces computation times. We estimate the parameters of our model—which include the variable production costs and fixed plant/model activation costs—using observed sourcing decisions for all production stages over the period 2021 to 2023. We then investigate counterfactual simulations for different types of industrial and trade policies and describe how those affect the production location choices across the global chains for EVs and the trade patterns from battery through assembly to final consumption destinations.
Date:
28 January 2025, 16:00
Venue:
Manor Road Building, Manor Road OX1 3UQ
Venue Details:
Seminar Room A
Speaker:
Keith Head (UBC Sauder School of Business)
Organising department:
Department of Economics
Part of:
Applied Microeconomics Seminar
Booking required?:
Not required
Audience:
Members of the University only
Editor:
Edward Valenzano
