The main challenge for a government is to optimise social welfare in an economic perspective. But what does this entail and which problems might lay ahead? In this lecture we highlight two specific issues: the distributional effects of financial stimulation schemes for EVs, and the issue of transaction costs.

Learning goals for this lecture are:

1. 1. 1. Understand the concept of distributional effects
      2. Learn how to prevent distributional effects in EV incentives
      3. Understand how a linked electricity and mobility system increase transaction costs
      4. List the factors that determine the cost of public charging