The purpose of this paper is to analyze the role of anenergy tax on technical improvements and on prices ofconsumer durables induced by strategic competition inenergy efficiency. If the gasoline tax is raised thisdoes in principle not affect the producers of carsbecause the motorist pays for it...

Summary The paper addresses entry barriers for a new technology - hydrogen powered cars or cars with fuel cell engines - if the network of its filling stations is missing. We use Hotelling’s model of product differentiation to characterize a situation where an incumbent firm produces the old...