Advantage is through the coupled mechanism. There's a chicken and egg problem for consumers of EVs. People are less likely to buy EVs because there aren't many charging ports so they take on extra risk and cost while betting that the future will allow them to regain similar conditions to their ICE vehicle. Filling stations are also at a similar risk investment situation as they don't want to build charging stations when there aren't enough EVs on the road to justify their costs.
So consumers and filling stations are stuck in a Nash Equilibrium because neither wants to take on the market bet. Both will actually suffer losses for moving first and realistically will not receive rewards for investing early (i.e. there is little to no opportunity cost). So Germany is shifting the risk away from the consumer.
But this is just a guess and I'm sure there are naive aspects about it. But it is also naive to just assume that everything can be solved with taxes and incentives. Though I hope this policy has some aspect that creates opportunity costs for not installing charging stations (i.e. gov will subsidize stations installing them at a decreasing rate)
Advantage is through the coupled mechanism. There's a chicken and egg problem for consumers of EVs. People are less likely to buy EVs because there aren't many charging ports so they take on extra risk and cost while betting that the future will allow them to regain similar conditions to their ICE vehicle. Filling stations are also at a similar risk investment situation as they don't want to build charging stations when there aren't enough EVs on the road to justify their costs.
So consumers and filling stations are stuck in a Nash Equilibrium because neither wants to take on the market bet. Both will actually suffer losses for moving first and realistically will not receive rewards for investing early (i.e. there is little to no opportunity cost). So Germany is shifting the risk away from the consumer.
But this is just a guess and I'm sure there are naive aspects about it. But it is also naive to just assume that everything can be solved with taxes and incentives. Though I hope this policy has some aspect that creates opportunity costs for not installing charging stations (i.e. gov will subsidize stations installing them at a decreasing rate)