Climate, Technology and Value: Insights from the First Decade with Mass-Consumption of Electric Vehicles

We investigate empirically whether the market value of electric vehicles, which have rapid technological progress, decline faster over their lifetime than gasoline vehicles, which is a mature technology. We use novel data from the market with the highest market shares for electric vehicles in the world, Norway, from the largest web platform for secondhand vehicles for 2011-2021. The price path of electric vehicles declines faster than gasoline vehicles. This seems to be driven by the electric vehicles with below median driving range. We hypothesize that the large price drop is mainly due to the fast technological improvement of electric vehicles.