Innovative alternatives take action – Investigating determinants of alternative fuel vehicle adoption

Alternative fuel vehicles (AFVs) as environmentally friendly alternatives to conventional internal combustion engines have gained increasing attention in general public. While empirical studies have begun to explore product-specific factors that drive consumer adoption of AFVs, an integrative framework of a comprehensive set of AFV adoption factors and its theoretical foundation as well as empirical validation is still missing. By drawing on theory of innovation adoption and theory of reasoned action we show that consumers’ perceptions of AFV attributes lead to a general attitude formation towards AFV. In conjunction with consumers’ subjective and personal norm, this in turn determines AFV adoption behavior. Concerning AFV attributes, compatibility, design, and relative advantage of AFVs exhibit the strongest influence on consumers’ attitude formation toward AFV. We derive implications for future research and policy makers. The latter include suggestions on how to develop and communicate AFV in order to stimulate AFV adoption.     

A choice experiment on alternative fuel vehicle preferences of private car owners in the Netherlands

This paper presents results of an online stated choice experiment on preferences of Dutch private car owners for alternative fuel vehicles (AFVs) and their characteristics. Results show that negative preferences for alternative fuel vehicles are large, especially for the electric and fuel cell car, mostly as a result of their limited driving range and considerable refueling times. Preference for AFVs increases considerably with improvements on driving range, refueling time and fuel availability. Negative AFV preferences remain, however, also with substantial improvements in AFV characteristics; the remaining willingness to accept is on average € 10,000–€ 20,000 per AFV. Results from a mixed logit model show that consumer preferences for AFVs and AFV characteristics are heterogeneous to a large extent, in particular for the electric car, additional detour time and fuel time for the electric and fuel cell car. An interaction model reveals that annual mileage is by far the most important factor that determines heterogeneity in preferences for the electric and fuel cell car. When annual mileage increases, the preference for electric and fuel cell cars decreases substantially, whilst the willingness to pay for driving range increases substantially. Other variables such as using the car for holidays abroad and the daily commute also appear to be relevant for car choice.     

Customizing driving cycles to support vehicle purchase and use decisions: Fuel economy estimation for alternative fuel vehicle users

Wider deployment of alternative fuel vehicles (AFVs) can help with increasing energy security and transitioning to clean vehicles. Ideally, adopters of AFVs are able to maintain the same level of mobility as users of conventional vehicles while reducing energy use and emissions. Greater knowledge of AFV benefits can support consumers’ vehicle purchase and use choices. The Environmental Protection Agency’s fuel economy ratings are a key source of potential benefits of using AFVs. However, the ratings are based on pre-designed and fixed driving cycles applied in laboratory conditions, neglecting the attributes of drivers and vehicle types. While the EPA ratings using pre-designed and fixed driving cycles may be unbiased they are not necessarily precise, owning to large variations in real-life driving. Thus, to better predict fuel economy for individual consumers targeting specific types of vehicles, it is important to find driving cycles that can better represent consumers’ real-world driving practices instead of using pre-designed standard driving cycles. This paper presents a methodology for customizing driving cycles to provide convincing fuel economy predictions that are based on drivers’ characteristics and contemporary real-world driving, along with validation efforts. The methodology takes into account current micro-driving practices in terms of maintaining speed, acceleration, braking, idling, etc., on trips. Specifically, using a large-scale driving data collected by in-vehicle Global Positioning System as part of a travel survey, a micro-trips (building block) library for California drivers is created using 54 million seconds of vehicle trajectories on more than 60,000 trips, made by 3000 drivers. To generate customized driving cycles, a new tool, known as Case Based System for Driving Cycle Design, is developed. These customized cycles can predict fuel economy more precisely for conventional vehicles vis-à-vis AFVs. This is based on a consumer’s similarity in terms of their own and geographical characteristics, with a sample of micro-trips from the case library. The AFV driving cycles, created from real-world driving data, show significant differences from conventional driving cycles currently in use. This further highlights the need to enhance current fuel economy estimations by using customized driving cycles, helping consumers make more informed vehicle purchase and use decisions.     

Consumer valuation of new car attributes: An econometric analysis of the demand for domestic and Japanese/Western European imports

Although previous studies of new vehicle choice decisions have shown that consumers evaluate the attributes of domestic vehicles differently from those of imported vehicles, the assumption underlying these results is overly restrictive. In particular, there is no reason to assume, a priori, that the attributes of all imported vehicles have similar effects upon consumer choice behavior. A competing hypothesis, for example, is that consumers of U.S. and European automobiles have similar attribute valuations that are differentiated from those of Japanese consumers. In the present paper, a multinomial logit model of vehicle type choice is developed which more completely differentiates imports by country of origin. Using a 1985 national sample of new car buyers to estimate the model, willingness to pay measures were calculated and nested hypothesis tests on attribute valuation performed. The results supported the hypothesis that consumers value vehicle attributes differently depending upon its country of origin. Moreover, consumers do not have similar valuations on the attributes of all imports implying that an arbitrary distinction between domestic and imported vehicles may produce misleading results.     

Consumer valuation of changes in driving range: A meta-analysis

We perform a meta-analysis of studies investigating consumer preferences for electric and other alternative fuel vehicles (AFVs) to provide insights into the way driving range is traded off for capital costs. We find that consumers are willing to pay, on average, between 66 and 75 US$ for a 1-mile increase in driving range. Ceteris paribus, 100-mile-range cars have to be priced about 60% less than their conventional counterparts to become competitive. In line with intuition, but in contrast to most specifications employed in primary studies, we find that consumers’ marginal willingness to pay (WTP) decreases at a diminishing rate with increases in driving range. The variation in the WTP and compensating variation estimates among examined studies can be attributed to differences in the levels of driving range considered, in other elements of the study design and in the country of study. Our findings support stated preference literature’s conclusion that short driving range has been a major limitation to the large-scale adoption of battery electric vehicles (BEVs) and other AFVs, and that technological developments permitting longer driving ranges will, to some extent, facilitate their market penetration. We further propose that consumer valuation of driving range should not be examined in isolation from other attributes related to refuelling activities, such as refuelling duration and the coverage of refuelling infrastructure.     

The role of alternative fuel vehicles: Using behavioral and sensor data to model hierarchies in travel

Greater adoption and use of alternative fuel vehicles (AFVs) can be environmentally beneficial and reduce dependence on gasoline. The use of AFVs vis-à-vis conventional gasoline vehicles is not well understood, especially when it comes to travel choices and short-term driving decisions. Using data that contains a sufficiently large number of early AFV adopters (who have overcome obstacles to adoption), this study explores differences in use of AFVs and conventional gasoline vehicles (and hybrid vehicles). The study analyzes large-scale behavioral data integrated with sensor data from global positioning system devices, representing advances in large-scale data analytics. Specifically, it makes sense of data containing 54,043,889 s of speed observations, and 65,652 trips made by 2908 drivers in 5 regions of California. The study answers important research questions about AFV use patterns (e.g., trip frequency and daily vehicle miles traveled) and driving practices. Driving volatility, as one measure of driving practice, is used as a key metric in this study to capture acceleration, and vehicular jerk decisions that exceed certain thresholds during a trip. The results show that AFVs cannot be viewed as monolithic; there are important differences within AFV use, i.e., between plug-in hybrids, battery electric, or compressed natural gas vehicles. Multi-level models are particularly appropriate for analysis, given that the data are nested, i.e., multiple trips are made by different drivers who reside in various regions. Using such models, the study also found that driving volatility varies significantly between trips, driver groups, and regions in California. Some alternative fuel vehicles are associated with calmer driving compared with conventional vehicles. The implications of the results for safety, informed consumer choices and large-scale data analytics are discussed.     

Will subsidies drive electric vehicle adoption? Measuring consumer preferences in the U.S. and China

We model consumer preferences for conventional, hybrid electric, plug-in hybrid electric (PHEV), and battery electric (BEV) vehicle technologies in China and the U.S. using data from choice-based conjoint surveys fielded in 2012–2013 in both countries. We find that with the combined bundle of attributes offered by vehicles available today, gasoline vehicles continue in both countries to be most attractive to consumers, and American respondents have significantly lower relative willingness-to-pay for BEV technology than Chinese respondents. While U.S. and Chinese subsidies are similar, favoring vehicles with larger battery packs, differences in consumer preferences lead to different outcomes. Our results suggest that with or without each country’s 2012–2013 subsidies, Chinese consumers are willing to adopt today’s BEVs and mid-range PHEVs at similar rates relative to their respective gasoline counterparts, whereas American consumers prefer low-range PHEVs despite subsidies. This implies potential for earlier BEV adoption in China, given adequate supply. While there are clear national security benefits for adoption of BEVs in China, the local and global social impact is unclear: With higher electricity generation emissions in China, a transition to BEVs may reduce oil consumption at the expense of increased air pollution and/or greenhouse gas emissions. On the other hand, demand from China could increase global incentives for electric vehicle technology development with the potential to reduce emissions in countries where electricity generation is associated with lower emissions.     

Individual characteristics and stated preferences for alternative energy sources and propulsion technologies in vehicles: A discrete choice analysis for Germany

With respect to the German goal of a transition to a lead market for electromobility within a short time period, this paper empirically examines the preferences for alternative energy sources or propulsion technologies in vehicles and particularly for electric vehicles. The data stem from a stated preference discrete choice experiment with 598 potential German car buyers. In order to simulate a realistic future purchase situation, seven vehicle types were incorporated in each of the six choice sets, i.e. hybrid, gas, biofuel, hydrogen, and electric vehicles besides common gasoline and diesel vehicles. The econometric analysis with flexible multinomial probit models reveals that potential car buyers in Germany currently have a low stated preference for electric, hydrogen, and hybrid vehicles. While our paper also discusses the impact of common vehicle attributes such as purchase price or service station availability, it particularly considers the effect of socio-demographic and environmental awareness variables. The estimation results reveal that younger potential car buyers have a higher stated preference for hydrogen and electric vehicles, males have a higher stated choice of hydrogen vehicles, and environmentally aware potential car buyers have a higher stated preference for hydrogen and electric vehicles. These results suggest that common policy instruments such as the promotion of research and development, taxation, or subsidization in the field of electromobility could be supplemented by strategies to increase the social acceptance of alternative vehicle types that are directly oriented to these population groups. Methodologically, our study highlights the importance of the inclusion of taste persistence across the choice sets and a high number of random draws in the Geweke–Hajivassiliou–Keane simulator in the simulated maximum likelihood estimation of the multinomial probit models.     

Consumer intentions for alternative fuelled and autonomous vehicles: A segmentation analysis across six countries

Rapid advances in the development of autonomous and alternative-fuel vehicles (AFVs) are likely to transform the future of mobility and could bring benefits such as improved road safety and lower emissions. Achieving these potential benefits requires widespread consumer support for these disruptive technologies. To date, research to explore consumer perceptions of transport innovations has tended to consider them in isolation (e.g., driverless cars, electric vehicles). The current paper examines the predictors of consumer interest in and willing to pay for both AFVs and autonomous vehicles through a choice experiment conducted in six diverse markets: Germany, India, Japan, Sweden, UK and US. Using Latent Class Discrete Choice Models, we observe significant heterogeneity both within and across the country samples. For example, while Japanese consumers are generally willing to pay for autonomous vehicles, in most European countries, consumers need to be compensated for automation. Within countries, though, we found some segments – typically, those with a university degree, and self-identifying as having a pro-environmental identity and as being innovators– are more in favour of automation. Significantly, we also found that support for autonomous vehicles is associated with support for AFVs, perhaps, due to common demographic or socio-psychological predictors of both types of innovative technology. These findings are valuable for policymakers and the automotive industry in identifying potential early adopters, as well as consumer segments or cultures less convinced to adopt these innovative transport technologies.     

Adoption of alternative fuel vehicles: Influence from neighbors,family and coworkers

During the last years, many governments have set targets for increasing the share of biofuels in the transportation sector. Understanding consumer behavior is essential in designing policies that efficiently increase the uptake of cleaner technologies. In this paper we analyze adopters and non-adopters of alternative fuel vehicles (AFVs). We use diffusion of innovation theory and the established notion that the social system and interpersonal influence play important roles in adoption. Based on a nationwide database of car owners we analyze interpersonal influence on adoption from three social domains: neighbors, family and coworkers. The results point primarily at a neighbor effect in that AFV adoption is more likely if neighbors also have adopted. The results also point at significant effects of interpersonal influence from coworkers and family members but these effects weaken or disappear when income, education level, marriage, age, gender and green party votes are controlled for. The results extend the diffusion of innovation and AFV literature with empirical support for interpersonal influence based on objective data where response bias is not a factor. Implications for further research, environmental and transport policy, and practitioners are discussed.     

Consumer preferences for electric vehicles in lower tier cities of China: Evidences from south Jiangsu region

China is the world biggest market of electric vehicles (EVs) in terms of production and sales. Existing studies on consumer preferences for EVs in China have generally focused on first-tier cities, while little attention has been paid to the lower tier cities. This exploratory study investigates consumer preferences for EVs in lower tier cities of China, by collecting stated preference (SP) data in two second-tier cities and three third-tier cities in the south Jiangsu region of China. The discrete choice modeling analysis shows that Chinese consumers in lower-tier cities are generally sensitive to monetary attributes, charging service and driving range of EVs. They also perceive Chinese vehicle brands to be disadvantaged compared with European brands. When comparing the differences in second-tier versus third-tier cities, we find that consumers in third-tier cities are more sensitive to purchase price, subsidy of purchase, and coverage of charging stations than their second-tier counterparts. This study also highlights the role of different psychological effects, such as symbols of car ownership, normative-face influence, and risk aversion, in shaping consumer preferences for EVs in lower-tier cities of China. Our results provide important implications for contextualizing government policies and marketing strategies in line with the different sizes and characteristics of the cities in China.     

A network wide simulation strategy of alternative fuel vehicles

This paper presents an integrated simulator “CUIntegration” to evaluate routing strategies based on energy and/or traffic measures of effectiveness for any Alternative Fuel Vehicles (AFVs). The CUIntegration can integrate vehicle models of conventional vehicles as well as AFVs developed with MATLAB-Simulink, and a roadway network model developed with traffic microscopic simulation software VISSIM. The architecture of this simulator is discussed in this paper along with a case study in which the simulator was utilized for evaluating a routing strategy for Plug-in Hybrid Electric Vehicles (PHEVs) and Electric Vehicles (EVs). The authors developed a route optimization algorithm to guide an AFV based on that AFV driver’s choice, which included; finding a route with minimum (1) travel time, (2) energy consumption or (3) a combination of both. The Application Programming Interface (API) was developed using Visual Basic to simulate the vehicle models/algorithms developed in MATLAB and direct vehicles in a roadway network model developed in VISSIM accordingly. The case study included a section of Interstate 83 in Baltimore, Maryland, which was modeled, calibrated and validated. The authors considered a worst-case scenario with an incident on the main route blocking all lanes for 30 min. The PHEVs and EVs were represented by integrating the MATLAB-Simulink vehicle models with the traffic simulator. The CUIntegration successfully combined vehicle models with a roadway traffic network model to support a routing strategy for PHEVs and EVs. Simulation experiments with CUIntegration revealed that routing of PHEVs resulted in cost savings of about 29% when optimized for the energy consumption, and for the same optimization objective, routing of EVs resulted in about 64% savings.     

An empirical investigation of the impact of behavioural and psychographic consumer characteristics on car preferences: An integrated model of car type choice

Based on the data collected from a large-scale survey research of 1622 consumers, the present paper develops a disaggregate, compensatory choice model to collectively examine the impact of under-examined factors on consumer car type choice behaviour. All existing econometric forecasting models of vehicle type choice in the literature have so far considered objective measures as determinants of vehicle type choice. The proposed choice model considers 12 car-type alternatives and is successively extended to allow for choice probability distortions resulting from individual heterogeneity across a set of 30 variables, related to objective, behavioural and psychographic consumer characteristics. The results provide clear evidence that variables such as purpose of car use, prepurchase information source used, consumer’s proneness towards buying an ecological car, consumer’s involvement with cars, and consumer’s attachment to cars, significantly affect car type choice. The results yield important implications for manufacturers, transportation planners and researchers.     

Consumer preferences for alternative fuel vehicles: A discrete choice analysis

This paper analyzes the potential demand for privately used alternative fuel vehicles using German stated preference discrete choice data. By applying a mixed logit model, we find that the most sensitive group for the adoption of alternative fuel vehicles embraces younger, well-educated, and environmentally aware car buyers, who have the possibility to plug-in their car at home, and undertake numerous urban trips. Moreover, many households are willing to pay considerable amounts for greater fuel economy and emission reduction, improved driving range and charging infrastructure, as well as for enjoying vehicle tax exemptions and free parking or bus lane access. The scenario results suggest that conventional vehicles will maintain their dominance in the market. Finally, an increase in the battery electric vehicles’ range to a level comparable with all other vehicles has the same impact as a multiple measures policy intervention package.     

On the effect of the prior of Bayes estimators of the willingness to pay for electric-vehicle driving range

We use Bayes’ estimator of a consumer-surplus probit model to study the relevance of the prior in a discrete choice model. We take random subsamples of varying sizes of stated preference data regarding ultra-low emission vehicle purchases in California and focus on the willingness-to-pay for improvements in driving range. Prior information is obtained from a meta-analysis of consumer valuation of driving range. We find the posterior distribution of the willingness-to-pay using a tight and a weakly informative prior, and also analyze the nonparametric estimates of the posterior compare these with the likelihood function of the problem. It is found that the weight of the prior is relevant for very small samples, but for standard sample sizes the prior vanishes. Thus, the Bayes estimator of a static discrete choice model is in general equivalent to the maximum likelihood estimator, although for some intermediate sample sizes the prior provides more realistic values.     

Consumer preferences for battery electric vehicles: A choice experimental survey in China

To accelerate the diffusion of battery electric vehicles (BEVs), consumer preferences for different products and policy attributes must be determined. Although previous studies have investigated consumer preferences for some product attributes, including purchase price, operation cost, driving range, and charging time, limited studies have discussed the broader aspects of product attributes, such as battery warranty and depreciation rate. Moreover, market-oriented incentives, including the personal carbon trading (PCT) scheme and the tradable driving credits (TDC) scheme, can theoretically be effective alternatives to expensive purchase subsidies. However, there is a lack of empirical evidence that confirms the influence of these two schemes on BEV adoption. To fill these gaps, we conducted a stated preference choice experimental survey in China and investigated the effect of product attributes, existing policy incentives, and two emerging market-oriented incentives on BEV adoption. Our results reveal that along with the main product attributes, battery warranty has a significant positive effect on inducing mainstream consumers to adopt BEVs while no preference difference occurs among existing policy incentives after purchase subsidies are abolished. For young consumers, almost all incentives that reduce the operation cost (e.g., PCT) or increase convenience (e.g., TDC) can increase their adoption of BEVs. These findings can provide important implications for the government with regard to designing novel incentives and promoting BEV adoption.     

The impact of car specifications,prices and incentives for battery electric vehicles in Norway: Choices of heterogeneous consumers

Electric vehicles (EVs), specifically Battery EVs (BEVs), can offer significant energy and emission savings over internal combustion engine vehicles. Norway has a long history of research and government incentives for BEVs. The BEV market in Norway allows us to fully examine consumers’ BEV choices influenced by car specifications, prices and government incentives (public bus lanes access, toll waiver and charging stations). The Random-Coefficient Discrete Choice Model (referred to as the BLP model) is applied to understand the choices of heterogeneous personal consumers and business buyers. Our study is instantiated on the entire EV sales data in Norway from 2011 to 2013, as well as a set of demographics at the municipality level. The results suggest significant positive effects of BEV technology improvement, space, toll waiver and charging station density on EV demand for both personal consumers and business buyers. However, the effects on business buyers may be generally less pronounced than on personal consumers. Interestingly, bus lanes access demonstrates a negative impact for personal consumers, possibly due to consumers’ concern regarding bus lane congestion. In addition, preferences on the BEV price can vary statistically among consumers with different income levels. Compared to the BEV technology development, demographical features and municipal incentives may have generally less impacts on market shares within the BEV market.     

Household demand and willingness to pay for clean vehicles

This paper examines the factors and incentives that are most likely to influence households’ choice for cleaner vehicles in the metropolitan area of Hamilton, Canada. Data collection is based on experimental design and stated choice methods through an Internet survey. Choice alternatives included a conventional gasoline, a hybrid and an alternative fuelled vehicle. Each option is described by a varying set of vehicle attributes and economic incentives, customized per respondent. Controlling for individual, household and dwelling-location characteristics, parameters of a nested logit model indicates that reduced monetary costs, purchase tax relieves and low emissions rates would encourage households to adopt a cleaner vehicle. On the other hand, incentives such as free parking and permission to drive on high occupancy vehicle lanes with one person in the car were not significant. Furthermore, limited fuel availability is a concern when households considered the adoption of an alternative fuelled vehicle. Finally, willingness-to-pay extra for a cleaner vehicle is computed based on the estimated parameters.     

Locating refuelling stations for alternative fuel vehicles: a review on models and applications

The recent concerns on environmental issues have expedited the technological development of alternative fuel vehicles (AFVs), but the deployment of AFVs still remains at the initial stage mainly because of the lack of refuelling facilities. Recognising this, researchers have conducted various studies, proposing a variety of approaches to strategically locating refuelling stations. This paper presents a comprehensive review of the approaches, focusing more on applications than computational issues. The review identifies two main elements of the approaches: location modelling and refuelling demand estimation. Examining how the elements were handled in refuelling location studies, this paper suggests that future refuelling location models should properly reflect the intricate and various perspectives of three major AFV stakeholders: drivers, government agencies and refuelling service providers. This study is expected to help researchers efficiently set up their refuelling location problems and identify critical factors for seeking the solutions.     

Consumer preferences for electric vehicles: a literature review

Widespread adoption of electric vehicles (EVs) may contribute to the alleviation of problems such as environmental pollution, global warming and oil dependency. However, the current market penetration of EV is relatively low in spite of many governments implementing strong promotion policies. This paper presents a comprehensive review of studies on consumer preferences for EV, aiming to better inform policy-makers and give direction to further research. First, we compare the economic and psychological approach towards this topic, followed by a conceptual framework of EV preferences which is then implemented to organise our review. We also briefly review the modelling techniques applied in the selected studies. Estimates of consumer preferences for financial, technical, infrastructure and policy attributes are then reviewed. A categorisation of influential factors for consumer preferences into groups such as socio-economic variables, psychological factors, mobility condition, social influence, etc. is then made and their effects are elaborated. Finally, we discuss a research agenda to improve EV consumer preference studies and give recommendations for further research.

Abbreviations: AFV: alternative fuel vehicle; BEV: battery electric vehicle; CVs: conventional vehicles; EVs: electric vehicles; FCV: fuel cell vehicle; HCM: hybrid choice model; HEV: hybrid electric vehicle (non plug-in); HOV: high occupancy vehicle; MNL: MultiNomial logit; MXL: MiXed logit model; PHEV: plug-in hybrid electric vehicle; RP: revealed preference; SP: stated preference.