A discrete–continuous model of households’ vehicle choice and usage, with an application to the effects of residential density

This paper develops a new method to solve multivariate discrete–continuous problems and applies the model to measure the influence of residential density on households’ vehicle fuel efficiency and usage choices. Traditional discrete–continuous modelling of vehicle holding choice and vehicle usage becomes unwieldy with large numbers of vehicles and vehicle categories. I propose a more flexible method of modelling vehicle holdings in terms of number of vehicles in each category, using a Bayesian multivariate ordinal response system. I also combine the multivariate ordered equations with Tobit equations to jointly estimate vehicle type/usage demand in a reduced form, offering a simpler alternative to the traditional discrete/continuous analysis. Using the 2001 National Household Travel Survey data, I find that increasing residential density reduces households’ truck holdings and utilization in a statistically significant but economically insignificant way. The results are broadly consistent with those from a model derived from random utility maximization. The method developed above can be applied to other discrete–continuous problems.     

Incorporating social impact on new product adoption in choice modeling: A case study in green vehicles

While discrete choice analysis is prevalent in capturing consumer preferences and describing their choice behaviors in product design, the traditional choice modeling approach assumes that each individual makes independent decisions, without considering the social impact. However, empirical studies show that choice is social – influenced by many factors beyond engineering performance of a product and consumer attributes. To alleviate this limitation, we propose a new choice modeling framework to capture the dynamic influence from social networks on consumer adoption of new products. By introducing social influence attributes into a choice utility function, social network simulation is integrated with the traditional discrete choice analysis in a three-stage process. Our study shows the need for considering social impact in forecasting new product adoption. Using hybrid electric vehicles as an example, our work illustrates the procedure of social network construction, social influence evaluation, and choice model estimation based on data from the National Household Travel Survey. Our study also demonstrates several interesting findings on the dynamic nature of new technology adoption and how social networks may influence hybrid electric vehicle adoption.     

The impact of fuel availability on demand for alternative-fuel vehicles

We study the impact of fuel availability on demand for alternative-fuel vehicles, using data from a survey of potential car buyers in Germany. The survey was conducted as a computer-assisted personal interview and included a choice experiment involving cars with various fuel types. Applying a standard logit model, we show that alternative fuel availability influences choices positively, but its marginal utility diminishes with supply. Furthermore, we derive consumers’ marginal willingness-to-pay for an expanded service station network. The results suggest that a failure to expand the availability of alternative fuel stations represents a significant barrier to the widespread adoption of alternative-fuel vehicles.     

An integrated model for discrete and continuous decisions with application to vehicle ownership,type and usage choices

This paper proposes an integrated econometric framework for discrete and continuous choice dimensions. The model system is applied to the problem of household vehicle ownership, type and usage. A multinomial probit is used to estimate household vehicle ownership, a multinomial logit is used to estimate the vehicle type (class and vintage) choices, and a regression is used to estimate the vehicle usage decisions. Correlation between the discrete (number of vehicles) and the continuous (total annual miles traveled) parts is captured with a full variance–covariance matrix of the unobserved factors. The model system is estimated using Simulated Log-Likelihood methods on data extracted from the 2009 US National Household Travel Survey and a secondary dataset on vehicle characteristics. Model estimates are applied to evaluate changes in vehicle holding and miles driven, in response to the evolution of social societies, living environment and transportation policies.     

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 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.     

Home charge timing choice behaviors of plug-in hybrid electric vehicle users under a dynamic electricity pricing scheme

This paper examines choice behaviors pertaining to the time at which users of plug-in hybrid electric vehicle with 24 km electric range charge their vehicles after arriving at home under a dynamic electricity pricing scheme. The following mutually exclusive alternatives are presented: no charging, charging immediately after arriving at home, charging at the cheapest time, and charging at other times. Four versions of a mixed logit model with unobserved heterogeneity are applied to panel data on vehicle usage from 9 households with 2226 observations in Toyota City. Estimation results suggest that users’ willingness to charge become stronger with increasing driving distance when the driving distance is less than the electric range of 24 km, while tend not to charge when the driving distance is longer than the electric range. Users who return home at the cheapest time or during the day are willing to charge immediately after arriving at home. Electricity prices significantly affect choices to charge at the cheapest time for all users, and stay-at-home mother users and users returning home in the evening tend to charge at the cheapest time. Users returning home in the evening also tend to charge at other times, and being accustomed to charge at a certain time increases the probability of charging at other times. In addition, considerable variations are found across individuals with respect to their preferences for charge timing alternatives as well as for electricity prices.     

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.     

Estimating the demand for electric automobiles using fully disaggregated probabilistic choice analysis

This study uses probabilistic choice models to predict potential demand for electric cars. Survey data are employed to estimate separate utility functions for each of 51 subjects. This provides a sample distribution of consumer preferences for vehicle attributes including price, operating cost and range. The results indicate great diversity in individual trade-offs among attributes, with range and top speed generally being highly valued. The sample of utility functions is then used to predict potential market shares for various kinds of electric vehicles as second cars. Demand is quite limited, except when (a) electric cars are considerably more advanced than anything likely to be available in the near future, and (b) consumers fear massive gasoline shortages. The latter effect derives from an observed “bias” in favor of electric autos, which is plausibly interpreted as a hedge against disruptions in the gasoline market.     

Vehicle purchasing behaviors comparison in two-stage choice perspective before and after eco-car promotion policy in Japan

This paper compares the vehicle purchasing behaviors in Japan between before and after the eco-car (environmental friendly vehicle) promotion policy implemented. Consumer behaviors are modeled as a two-stage decision process: a consideration set formation stage and a choice-making stage. In the first stage, all available vehicle types are included in the choice set, and consumers are assumed to apply a conjunctive screening rule to construct consideration sets. In the second stage, consumers only evaluate the vehicles in the consideration set and choose the one with maximum utility. The applied Hierarchical Bayes model can avoid the issue of an indifferentiable and irregular likelihood surface caused by thresholds and discontinuities, and the data augmentation and Markov-Chain Monte Carlo estimation methods make it possible to estimate two stages simultaneously using only the information about the consumers’ actual choices. The estimations indicate that the change of consumer behavior during the formation of consideration sets after the policy implemented: more people preferred compact and hybrid vehicles because of their better fuel efficiency and more competitive prices under the tax reduction policy. The results show, however, that most of consumers who purchase hybrid vehicles after the policy implemented are only including hybrid vehicles in their consideration sets, and oil price and vehicle price still play important roles in the choice-making stage for these who consider both gasoline and hybrid vehicles.     

Testing electric vehicle demand in ‘hybrid households’ using a reflexive survey

The debate over electric vehicles (EVs) pivots largely on issues of market demand: will consumers purchase a vehicle that provides substantially less driving range, yet can be refueled at home, than an otherwise comparable gasoline vehicle? Also, what role do other unique attributes of EVs play in the purchase decision? Most previous studies find that limited driving range is a serious market barrier; many of those same studies ignore or under-value other novel attributes. To probe these future consumer decision processes deeply and robustly, we first devised and conducted detailed, interactive and experiment-oriented interviews. Then, incorporating what we learned, we designed an innovative mail survey and administered it to 454 multi-car households in California. The four-stage mail survey included a video of EV use and recharging and other informational material, completion of a 3-day trip diary and map of activity locations, and vehicle choice experiments. In addition to propulsion systems, respondents made choices of body styles, driving ranges, and other features. We formalized and tested what we call the hybrid household hypothesis: households who choose EVs will be purposefully diversifying their vehicle holdings to achieve the unique advantages of different propulsion systems. The hypothesis is supported, given the assumptions in our experimental design. In fact, a significantly larger number of EVs are chosen than the minimum number that would support our hypothesis. We find that purchases of battery-powered EVs by hybrid households would account for between 7 and 18% of annual light duty vehicle sales in California. EVs sold to fleets and other households would be in addition to those identified by this study.     

Random regret minimization or random utility maximization: an exploratory analysis in the context of automobile fuel choice

Interest in alternative behavioural paradigms to random utility maximization (RUM) has existed ever since the dominance of the RUM formulation. One alternative is known as random regret minimization (RRM), which suggests that when choosing between alternatives, decision makers aim to minimize anticipated regret. Although the idea of regret is not new, its incorporation into the same discrete choice framework of RUM is very recent. This paper is the first to apply the RRM‐model framework to model choice amongst durable goods. Specifically, we estimate and compare the RRM and RUM models in a stated choice context of choosing amongst vehicles fuelled with petrol, diesel and hybrid (associated with specific levels of fuel efficiency and engine capacity). The RRM model is found to achieve a marginally better fit (using a non‐nested test of differences) than its equally parsimonious RUM counterpart. As a second contribution, we derive a formulation for regret‐based elasticities and compare utility‐based and regret‐based elasticities in the context of stated vehicle type choices. We find that in the context of our choice data, mean estimates of elasticities are different for many of the attributes and alternatives. Copyright © 2011 John Wiley & Sons, Ltd.     

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.     

Modelling the adoption intention and installation choice of an automotive after-market mild-solar-hybridization kit

Despite the recent commercial success of hybrid, plug-in hybrid and electric vehicles their market share is still insufficient to produce either a significant impact on energy consumption on a global basis or a profitable automotive segment. In this context, the possibility of upgrading conventional vehicles to hybrid electric vehicles is gaining increasing interest.To this aim this paper investigated and modelled the intention to install an after-market hybridization solar-kit (HySolarKit) in order to ascertain the main behavioural determinants of the choice process and set up an operational model with which to estimate the market potential of such technology. In particular, two behavioural stages of the choice process were analysed and modelled: (i) the intention to adopt the HySolarKit; (ii) the choice to install the HySolarKit. Both issues were addressed through ad hoc stated preference surveys carried out in two different Italian cities, and through the specification and the calibration of discrete choice models based on the behavioural paradigm of random utility theory. Different modelling solutions (homoscedastic and heteroscedastic) were compared in terms of goodness-of-fit and sensitivity to level-of-service attributes. The results showed the technological potential of the HySolarKit, and that both behavioural stages may be effectively modelled through random utility theory. Estimation results allowed an interpretation of the main determinants of the investigated phenomena, making it possible to quantify the potential effects and the concerns towards such a green solution, and making it possible to draw up operative marketing strategies. In particular, the intention to adopt the kit mainly depends on socio-economic factors as well as activity-related and attitudinal attributes, whereas the probability of installing the kit is greatly affected, to the same extent, by installation cost, the charging cost and the weekly mileage driven.     

Mainstream consumers driving plug-in battery-electric and plug-in hybrid electric cars: A qualitative analysis of responses and evaluations

Plug-in electric vehicles can potentially emit substantially lower CO₂ emissions than internal combustion engine vehicles, and so have the potential to reduce transport emissions without curtailing personal car use. Assessing the potential uptake of these new categories of vehicles requires an understanding of likely consumer responses. Previous in-depth explorations of appraisals and evaluations of electric vehicles have tended to focus on ‘early adopters’, who may not represent mainstream consumers. This paper reports a qualitative analysis of responses to electric cars, based on semi-structured interviews conducted with 40 UK non-commercial drivers (20 males, 20 females; age 24-70 years) at the end of a seven-day period of using a battery electric car (20 participants) or a plug-in hybrid car (20 participants). Six core categories of response were identified: (1) cost minimisation; (2) vehicle confidence; (3) vehicle adaptation demands; (4) environmental beliefs; (5) impression management; and, underpinning all other categories, (6) the perception of electric cars generally as ‘work in progress’ products. Results highlight potential barriers to the uptake of current-generation (2010) plug-in electric cars by mainstream consumers. These include the prioritization of personal mobility needs over environmental benefits, concerns over the social desirability of electric vehicle use, and the expectation that rapid technological and infrastructural developments will make current models obsolete. Implications for the potential uptake of future electric vehicles are discussed.     

Forward power-train energy management modeling for assessing benefits of integrating predictive traffic data into plug-in-hybrid electric vehicles

In this paper, a forward power-train plug-in hybrid electric vehicle model with an energy management system and a cycle optimization algorithm is evaluated for energy efficiency. Using wirelessly communicated predictive traffic data for vehicles in a roadway network, as envisioned in intelligent transportation systems, traffic prediction cycles are optimized using a cycle optimization strategy. This resulted in a 56-86% fuel efficiency improvements for conventional vehicles. When combined with the plug-in hybrid electric vehicle power management system, about 115% energy efficiency improvements were achieved. Further improvements in the overall energy efficiency of the network were achieved with increased penetration rates of the intelligent transportation assisted enabled plug-in hybrid electric vehicles.     

A non-compensatory model of transportation behavior based on sequential consideration of attributes

The proposed model of travel choice behavior is based upon an assumption that individuals compare their choice alternatives on a series of attributes ordered in terms of importance; they eliminate from consideration those alternatives which do not meet their expectation on one or more of the characteristics. The process is repeated with adjusted levels of expectation until only one alternative remains. The model thus incorporates a number of psychological decision axioms which have seldom been applied in models aimed at providing transportation planners with useful information from consumer survey data.Estimates of parameters defining distributions of expectation levels in a population of travelers are generated using a nonlinear optimization technique. The technique is demonstrated to provide estimates which replicate well the choices of travelers in two different contexts: choice of hypothetical concepts of small urban vehicles and choice of destination for shopping trips within an urban area.     

Strategies to achieve deep reductions in metropolitan transportation GHG emissions: the case of Philadelphia

ABSTRACT

This paper investigates strategies that could achieve an 80% reduction in transportation emissions from current levels by 2050 in the City of Philadelphia. The baseline daily lifecycle emissions generated by road transportation in the Greater Philadelphia Region in 2012 were quantified using trip information from the 2012 Household Travel Survey (HTS). Emissions were projected to the year 2050 accounting for population growth and trends in vehicle technology for both the Greater Philadelphia Region and the City of Philadelphia. The impacts of vehicle technology and shifts in travel modes on greenhouse gas (GHG) emissions in 2050 were quantified using a scenario approach. The analysis of 12 different scenarios suggests that 80% reduction in emissions is technically feasible through a combination of active transportation, cleaner fuels for public transit vehicles, and a significant market penetration of battery-electric vehicles. The additional electricity demand associated with greater use of electric vehicles could amount to 10.8 TWh/year. The use of plug-in hybrid electric vehicles (PHEV) shows promising results due to high reductions in GHG emissions at a potentially manageable cost.     

Modeling the effect of electric vehicle adoption on pedestrian traffic safety: An agent-based approach

When operated at low speeds, electric and hybrid vehicles have created pedestrian safety concerns in congested areas of various city centers, because these vehicles have relatively silent engines compared to those of internal combustion engine vehicles, resulting in safety issues for pedestrians and cyclists due to the lack of engine noise to warn them of an oncoming electric or hybrid vehicle. However, the driver behavior characteristics have also been considered in many studies, and the high end-prices of electric vehicles indicate that electric vehicle drivers tend to have a higher prosperity index and are more likely to receive a better education, making them more alert while driving and more likely to obey traffic rules. In this paper, the positive and negative factors associated with electric vehicle adoption and the subsequent effects on pedestrian traffic safety are investigated using an agent-based modeling approach, in which a traffic micro-simulation of a real intersection is simulated in 3D using AnyLogic software. First, the interacting agents and dynamic parameters are defined in the agent-based model. Next, a 3D intersection environment is created to integrate the agent-based model into a visual simulation, where the simulation records the number of near-crashes occurring in certain pedestrian crossings throughout the virtual time duration of a year. A sensitivity analysis is also carried out with 9000 subsequent simulations performed in a supercomputer to account for the variation in dynamic parameters (ambient sound level, vehicle sound level, and ambient illumination). According to the analysis, electric vehicles have a 30% higher pedestrian traffic safety risk than internal combustion engine vehicles under high ambient sound levels. At low ambient sound levels, however, electric vehicles have only a 10% higher safety risk for pedestrians. Low levels of ambient illumination also increase the number of pedestrians involved in near-crashes for both electric vehicles and combustion engine vehicles.     

Electric vehicles for greenhouse gas reduction in China: A cost-effectiveness analysis

There have been ongoing debates over whether battery electric vehicles contribute to reducing greenhouse gas emissions in China’s context, and if yes, whether the greenhouse gas emissions reduction compensates the cost increment. This study informs such debate by examining the life-cycle cost and greenhouse gas emissions of conventional vehicles, hybrid electric vehicles and battery electric vehicles, and comparing their cost-effectiveness for reducing greenhouse gas emissions. The results indicate that under a wide range of vehicle and driving configurations (range capacity, vehicle use intensity, etc.), battery electric vehicles contribute to reducing greenhouse gas emissions compared with conventional vehicles, although their current cost-effectiveness is not comparable with hybrid electric vehicles. Driven by grid mix optimization, power generation efficiency improvement, and battery cost reduction, the cost-effectiveness of battery electric vehicles is expected to improve significantly over the coming decade and surpass hybrid electric vehicles. However, considerable uncertainty exists due to the potential impacts from factors such as gasoline price. Based on the analysis, it is recommended that the deployment of battery electric vehicles should be prioritized in intensively-used fleets such as taxis to realize high cost-effectiveness. Technology improvements both in terms of power generation and vehicle electrification are essential in improving the cost-effectiveness of battery electric vehicles.