Fast charging stations: Simulating entry and location in a game of strategic interaction*

- We simulate entry and location of fast charging stations for electric vehicle (EV).
- Only at an EV penetration rate above 3% a network of stations is self-sufficient.
- Price competition drives location differentiation.
- Policy intervention does not improve welfare for every level of penetration of EV.

This paper uses a game of strategic interaction to simulate entry and location of fast charging stations for electric vehicles. It evaluates the equilibria obtained in terms of social welfare and firm spatial differentiation. Using Barcelona mobility survey, demographic data and the street graph we find that only at an electric vehicle penetration rate above 3% does a dense network of stations appear as the equilibrium outcome of a market with no fiscal transfers. We also find that price competition drives location differentiation measured not only in Euclidean distances but also in consumer travel distances.