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.     

What are the value and implications of two-car households for the electric car?

The major barriers to a more widespread introduction of battery electric vehicles (BEVs) beyond early adopters are the limited range, charging limitations, and costly batteries. An important question is therefore where these effects can be most effectively mitigated. An optimization model is developed to estimate the potential for BEVs to replace one of the conventional cars in two-car households and to viably contribute to the households’ driving demand. It uses data from 1 to 3 months of simultaneous GPS logging of the movement patterns for both cars in 64 commuting Swedish two-car households in the Gothenburg region.The results show that, for home charging only, a flexible vehicle use strategy can considerably increase BEV driving and nearly eliminate the unfulfilled driving in the household due to the range and charging limitations with a small battery. The present value of this flexibility is estimated to be on average $6000–$7000 but varies considerably between households. With possible near-future prices for BEVs based on mass production cost estimates, this flexibility makes the total cost of ownership (TCO) for a BEV advantageous in almost all the investigated households compared to a conventional vehicle or a hybrid electric vehicle. Because of the ubiquity of multi-car households in developed economies, these families could be ideal candidates for the initial efforts to enhance BEV adoptions beyond the early adopters. The results of this research can inform the design and marketing of cheaper BEVs with small but enough range and contribute to increased knowledge and awareness of the suitability of BEVs in such households.     

User satisfaction with battery electric vehicles in South Korea

Battery electric vehicles (BEVs) have been promoted by the government over the last several years, driven by public concern over pollutant emissions from internal combustion engines. However, the conditions related to driving BEVs are not yet satisfactory for many BEV users, as evident from sluggish market growth compared with general market forecasts. Thus, a fundamental aspect of diagnosing the current conditions of BEV operation is to evaluate BEV user satisfaction. This study establishes hypothetical links between potential factors and BEV user satisfaction, and between BEV use satisfaction and intention to repurchase and recommend. The hypothetical links are specified using a partial least squares structural equation model (PLS-SEM) and estimated based on a survey of actual BEV owners (N=160) who had driven BEVs for at least six months. The outcomes of PLS-SEM suggest that seven relations out of nine hypothetical links were statistically significant. In particular, it is noticeable that the intention for cost-saving during operation is a key factor for BEV user satisfaction and that user satisfaction with range and charging has a positive effect on the overall satisfaction of BEV users. Furthermore, those who are satisfied with BEVs have the intention to repurchase and recommend BEVs to others. Because this study was conducted based on actual experience of BEV users, the findings could enhance understanding of the BEV driving environment and, thus, pave the way to provision of better service for BEV users.     

Fuel cycle emissions and life cycle costs of alternative fuel vehicle policy options for the City of Houston municipal fleet

Municipal fleet vehicle purchase decisions provide a direct opportunity for cities to reduce emissions of greenhouse gases (GHG) and air pollutants. However, cities typically lack comprehensive data on total life cycle impacts of various conventional and alternative fueled vehicles (AFV) considered for fleet purchase. The City of Houston, Texas, has been a leader in incorporating hybrid electric (HEV), plug-in hybrid electric (PHEV), and battery electric (BEV) vehicles into its fleet, but has yet to adopt any natural gas-powered light-duty vehicles. The City is considering additional AFV purchases but lacks systematic analysis of emissions and costs. Using City of Houston data, we calculate total fuel cycle GHG and air pollutant emissions of additional conventional gasoline vehicles, HEVs, PHEVs, BEVs, and compressed natural gas (CNG) vehicles to the City's fleet. Analyses are conducted with the Greenhouse Gases, Regulated Emissions, and Energy use in Transportation (GREET) model. Levelized cost per kilometer is calculated for each vehicle option, incorporating initial purchase price minus residual value, plus fuel and maintenance costs. Results show that HEVs can achieve 36% lower GHG emissions with a levelized cost nearly equal to a conventional sedan. BEVs and PHEVs provide further emissions reductions, but at levelized costs 32% and 50% higher than HEVs, respectively. CNG sedans and trucks provide 11% emissions reductions, but at 25% and 63% higher levelized costs, respectively. While the results presented here are specific to conditions and vehicle options currently faced by one city, the methods deployed here are broadly applicable to informing fleet purchase decisions.     

Routing aspects of electric vehicle drivers and their effects on network performance

This study investigates the routing aspects of battery electric vehicle (BEV) drivers and their effects on the overall traffic network performance. BEVs have unique characteristics such as range limitation, long battery recharging time, and recuperation of energy lost during the deceleration phase if equipped with regenerative braking system (RBS). In addition, the energy consumption rate per unit distance traveled is lower at moderate speed than at higher speed. This raises two interesting questions: (i) whether these characteristics of BEVs will lead to different route selection compared to conventional internal combustion engine vehicles (ICEVs), and (ii) whether such route selection implications of BEVs will affect the network performance. With the increasing market penetration of BEVs, these questions are becoming more important. This study formulates a multi-class dynamic user equilibrium (MCDUE) model to determine the equilibrium flows for mixed traffic consisting of BEVs and ICEVs. A simulation-based solution procedure is proposed for the MCDUE model. In the MCDUE model, BEVs select routes to minimize the generalized cost which includes route travel time, energy related costs and range anxiety cost, and ICEVs to minimize route travel time. Results from numerical experiments illustrate that BEV drivers select routes with lower speed to conserve and recuperate battery energy while ICEV drivers select shortest travel time routes. They also illustrate that the differences in route choice behavior of BEV and ICEV drivers can synergistically lead to reduction in total travel time and the network performance towards system optimum under certain conditions.     

Network user equilibrium of battery electric vehicles considering flow-dependent electricity consumption

This paper addresses the equilibrium traffic assignment problem involving battery electric vehicles (BEVs) with flow-dependent electricity consumption. Due to the limited driving range and the costly/time-consuming recharging process required by current BEVs, as well as the scarce availability of battery charging/swapping stations, BEV drivers usually experience fear that their batteries may run out of power en route. Therefore, when choosing routes, BEV drivers not only try to minimize their travel costs, but also have to consider the feasibility of their routes. Moreover, considering the potential impact of traffic congestion on the electricity consumption of BEVs, the feasibility of routes may be determined endogenously rather than exogenously. A set of user equilibrium (UE) conditions from the literature is first presented to describe the route choice behaviors of BEV drivers considering flow-dependent electricity consumption. The UE conditions are then formulated as a nonlinear complementarity model. The model is further formulated as a variational inequality (VI) model and is solved using an iterative solution procedure. Numerical examples are provided to demonstrate the proposed models and solution algorithms. Discussions of how to evaluate and improve the system performance with non-unique link flow distribution are offered. A robust congestion pricing model is formulated to obtain a pricing scheme that minimizes the system travel cost under the worst-case tolled flow distribution. Finally, a further extension of the mathematical formulation for the UE conditions is provided.     

Investigating barriers for plug-in electric vehicle deployment in fleets

Commercial vehicle fleets constitute a favourable entry for plug-in electric vehicles (PEVs) into the road transport system. During an extensive demonstration project, with 500 PEVs operating in 100 public and private enterprises, 40 battery electric vehicle (BEV) users were invited to focus group discussions. The focus groups allowed the users to discuss their actual experiences of operating BEVs and thereby provide a greater understanding of the operating conditions experienced by BEV users in different organisations. Based on the discussions, this paper focus on operational barriers, rather than traditional technical or economical barriers. The findings complemented earlier data collected from the demonstration project and further explained the recorded driving and charging behaviour. The conditions to adopt the BEVs vary between the users, and this in turn can relate to organisational conditions. Given a favourable introduction, users adopt and accept the technology. The paper contributes with new findings regarding implementation of BEVs in commercial vehicle fleets and provides an in-depth understanding of the operational barriers that public or private enterprises face when introducing BEVs in their vehicle fleets.     

Greenhouse gas emission benefits of vehicle lightweighting: Monte Carlo probabalistic analysis of the multi material lightweight vehicle glider

Vehicle lightweighting reduces fuel cycle greenhouse gas (GHG) emissions but may increase vehicle cycle (production) GHG emissions because of the GHG intensity of lightweight material production. Life cycle GHG emissions are estimated and sensitivity and Monte Carlo analyses conducted to systematically examine the variables that affect the impact of lightweighting on life cycle GHG emissions. The study uses two real world gliders (vehicles without powertrain or battery) to provide a realistic basis for the analysis. The conventional and lightweight gliders are based on the Ford Fusion and Multi Material Lightweight Vehicle, respectively. These gliders were modelled with internal combustion engine vehicle (ICEV), hybrid electric vehicle (HEV), and battery electric vehicle (BEV) powertrains. The probability that using the lightweight glider in place of the conventional (steel-intensive) glider reduces life cycle GHG emissions are: ICEV, 100%; HEV, 100%, and BEV, 74%.The extent to which life cycle GHG emissions are reduced depends on the powertrain, which affects fuel cycle GHG emissions. Lightweighting an ICEV results in greater base case GHG emissions mitigation (10 t CO₂eq.) than lightweighting a more efficient HEV (6 t CO₂eq.). BEV lightweighting can result in higher or lower GHG mitigation than gasoline vehicles, depending largely on the source of electricity.     

Electrification of the two-car household: PHEV or BEV?

In previous works, we have shown two-car households to be better suited than one-car households for leveraging the potential benefits of the battery electric vehicle (BEV), both when the BEV simply replaces the second car and when it is used optimally in combination with a conventional car to overcome the BEV’s range limitation and increase its utilization. Based on a set of GPS-measured car movement data from 64 two-car households in Sweden, we here assess the potential electric driving of a plug-in hybrid electric vehicle (PHEV) in a two-car household and compare the resulting economic viability and potential fuel substitution to that of a BEV.Using estimates of near-term mass production costs, our results suggest that, for Swedish two-car households, the PHEV in general should have a higher total cost of ownership than the BEV, provided the use of the BEV is optimized. However, the PHEV will increasingly be favored if, for example, drivers cannot or do not want to optimize usage. In addition, the PHEV and the BEV are not perfect substitutes. The PHEV may be favored if drivers require that the vehicle be able to satisfy all driving needs (i.e., if drivers don’t accept the range and charge-time restrictions of the BEV) or if drivers requires an even larger battery in the BEV to counter range anxiety.We find that, given a particular usage strategy, the electric drive fraction (EDF) of the vehicle fleet is less dependent on whether PHEVs or BEVs are used to replace one of the conventional cars in two-car households. Instead, the EDF depends more on the usage strategy, i.e., on whether the PHEV/BEV is used to replace the conventional car with the higher annual mileage (“the first car”), the less used car (“the second car”), or is used flexibly to substitute for either in order to optimize use. For example, from a fuel replacement perspective it is often better to replace the first car with a PHEV than to replace the second with a BEV.     

Hybrid- and battery-electric vehicles offer low-cost climate benefits in China

Car ownership in China is expected to grow dramatically in the coming decades. If growing personal vehicle demand is met with conventional cars, the increase in greenhouse gas emissions will be substantial. One way to mitigate carbon dioxide (CO₂) emissions from passenger travel is to meet growing demand for cars with alternative vehicles such as hybrid- and battery-electric vehicles (HEVs and BEVs). Our study examines the cost-effectiveness of transitioning from conventional cars to HEVs and BEVs, by calculating their marginal abatement cost (MAC) of carbon in the long-run. We find that transitioning from conventional to hybrid and battery electric light-duty, four-wheel vehicles can achieve carbon emissions reductions at a negative cost (i.e. at a net benefit) in China. In 2030, the average MAC is estimated to be about −$140/ton CO₂ for HEVs and −$515/ton CO₂-saved for BEVs, varying by key parameters. The total mitigation potential of each vehicle technology is estimated to be 1.38 million tons for HEVs and 0.75 million tons for BEVs.     

Optimum routing of battery electric vehicles: Insights using empirical data and microsimulation

This study investigates the energy consumption impact of route selection on battery electric vehicles (BEVs) using empirical second-by-second Global Positioning System (GPS) commute data and traffic micro-simulation data. Drivers typically choose routes that reduce travel time and therefore travel cost. However, BEVs’ limited driving range makes energy efficient route selection of particular concern to BEV drivers. In addition, BEVs’ regenerative braking systems allow for the recovery of energy while braking, which is affected by route choices. State-of-the-art BEV energy consumption models consider a simplified constant regenerative braking energy efficiency or average speed dependent regenerative braking factors. To overcome these limitations, this study adopted a microscopic BEV energy consumption model, which captures the effect of transient behavior on BEV energy consumption and recovery while braking in a congested network. The study found that BEVs and conventional internal combustion engine vehicles (ICEVs) had different fuel/energy-optimized traffic assignments, suggesting that different routings be recommended for electric vehicles. For the specific case study, simulation results indicate that a faster route could actually increase BEV energy consumption, and that significant energy savings were observed when BEVs utilized a longer travel time route because energy is regenerated. Finally, the study found that regenerated energy was greatly affected by facility types and congestion levels and also BEVs’ energy efficiency could be significantly influenced by regenerated energy.     

Effectiveness of incentives on electric vehicle adoption in Norway

Battery Electric vehicles (BEVs) shift pollution off the road and to potentially less damaging and more varied sources than petroleum. Depending on the source of electricity, a transition to electrified personal transportation can dramatically reduce greenhouse gas emissions and air pollutants. However current EVs tend to be more expensive and have shorter range, which can hinder public adoption. Government incentives can be used to alleviate these factors and encourage adoption. Norway has a long history incentivizing BEV adoption including measures such as exemption from roadway tolls, access to charging infrastructure, point of sale tax incentives, and usage of public bus use limited lanes. This paper analyzed the sales of electric vehicles on a regional and municipal basis in Norway and then cross analyzed these with the corresponding local demographic data and incentive measures to attempt to ascertain which factors lead to higher BEV adoption. It was concluded that access to BEV charging infrastructure, being adjacent to major cities, and regional incomes had the greatest predictive power for the growth of BEV sales. It was also concluded that short-range vehicles showed somewhat more income and unemployment sensitivity than long-range vehicles. Toll exemptions and the right to use bus designated lanes do not seem to have statistically significant predictive power for BEV sales in our linear municipal-level models, but this could be due to neighboring major cities containing those incentive features.     

Implementation and test of a hybrid storage system on an electric urban bus

Customer acceptance of Battery Electric Vehicles (BEVs) depends strongly on the performance of the Energy Storage System (ESS). Energy density, power density and lifetime of ESSs are three key parameters to be optimized in a BEV. For this purpose the use of a hybrid energy source on board of electric vehicles has been proposed and analyzed in literature. However, most of the previous studies have been limited to simulation or to test bench experiments of the ESS. This paper focuses on the implementation and use of the association of high energy NiCd battery and high power supercapacitors on board of a 3.5 t urban bus. An uncomplicated and efficient energy management strategy has been implemented and tested. The behavior of the vehicle has been investigated by experiment on a roller test bench for two different driving cycles, highlighting the effects of the hybridization: reduction of losses within the battery with consequent expected lifetime extension, improved dynamic of the vehicle and a possible driving range extension.     

A consumer-oriented total cost of ownership model for different vehicle types in Germany

In Germany, market penetration by alternative powertrains has been generally processing at a slow pace. Therefore, reaching the 2020 target of one million registered electric vehicles (EVs) is a major challenge. We analyze the German market by advancing and refining existing consumer-oriented total cost of ownership (TCO_C) models and demonstrate the validity of our model by comparing the cost-efficiency of EVs and internal combustion engine vehicles (ICEVs) including the battery resale value for second use and second life. The TCO_C model was calculated for the ten most frequently registered battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs) and compared with ICEVs in the same vehicle segments. The results are further validated through applying three typical annual mileage driver profiles and by Monte Carlo simulations under various scenarios. Results reveal that only a few BEVs and HEVs are economical without subsidies when compared with ICEVs in all considered scenarios. The subsidies only barely change the results. The mini and the medium vehicle segment remain uneconomical in all tested scenarios. Overall, we conclude that subsidies support the competitiveness of BEVs, but fail to lead to favorable TCO_C within several vehicle segments and several tested annual mileages.     

To save money or to save time: Intelligent routing design for plug-in hybrid electric vehicle

Electric vehicles (EVs) are promising alternative to conventional vehicles, due to their low fuel cost and low emissions. As a subset of EVs, plug-in hybrid electric vehicles (PHEVs) backup batteries with combustion engines, and thus have a longer traveling range than battery electric vehicles (BEVs). However, the energy cost of a PHEV is higher than a BEV because the gasoline price is higher than the electricity price. Hence, choosing a route with more charging opportunities may result in less fuel cost than the shortest route. Different with the traditional shortest-path and shortest-time routing methods, we propose a new routing choice with the lowest fuel cost for PHEV drivers. Existing algorithms for gasoline vehicles cannot be applied because they never considered the regenerative braking which may result in negative energy consumption on some road segments. Existing algorithms for BEVs are not competent too because PHEVs have two power sources. Thus, even if along the same route, different options of power source will lead to different energy consumption. This paper proposes a cost-optimal algorithm (COA) to deal with the challenges. The proposed algorithm is evaluated using real-world maps and data. The results show that there is a trade-off between traveling cost and time consumed when driving PHEVs. It is also observed that the average detour rate caused by COA is less than 14%. Significantly, the algorithm averagely saves more than 48% energy cost compared to the shortest-time routing.     

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.     

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.     

Electric vehicle charging station locations: Elastic demand,station congestion,and network equilibrium

Battery-only electric vehicles (BEVs) generally offer better air quality through lowered emissions, along with energy savings and security. The issue of long-duration battery charging makes charging-station placement and design key for BEV adoption rates. This work uses genetic algorithms to identify profit-maximizing station placement and design details, with applications that reflect the costs of installing, operating, and maintaining service equipment, including land acquisition. Fast electric vehicle charging stations (EVCSs) are placed across a congested city's network subject to stochastic demand for charging under a user-equilibrium traffic assignment. BEV users’ station choices consider endogenously determined travel times and on-site charging queues. The model allows for congested-travel and congested-station feedback into travelers’ route choices under elastic demand and BEV owners’ station choices, as well as charging price elasticity for BEV charging users.Boston-network results suggest that EVCSs should locate mostly along major highways, which may be a common finding for other metro settings. If 10% of current EV owners seek to charge en route, a user fee of $6 for a 30-min charging session is not enough for station profitability under a 5-year time horizon in this region. However, $10 per BEV charging delivers a 5-year profit of $0.82 million, and 11 cords across 3 stations are enough to accommodate a near-term charging demand in this Boston-area application. Shorter charging sessions, higher fees, and/or allowing for more cords per site also increase profits generally, everything else constant. Power-grid and station upgrades should keep pace with demand, to maximize profits over time, and avoid on-site congestion.     

Are multi-car households better suited for battery electric vehicles? – Driving patterns and economics in Sweden and Germany

Battery electric vehicles (BEVs) could reduce CO₂ emissions from the transport sector but their limited electric driving range diminishes their utility to users. The effect of the limited driving range can be reduced in multi-car households where users could choose between a BEV and a conventional car for long-distance travel. However, to what extent the driving patterns of different cars in a multi-car household’s suit the characteristics of a BEV needs further analysis. In this paper we analyse the probability of daily driving above a fixed threshold for conventional cars in current Swedish and German car driving data. We find second cars in multi-car households to require less adaptation and to be better suited for BEV adoption compared to first cars in multi-car households as well as to cars in single-car households. Specifically, the share of second cars that could fulfil all their driving is 20 percentage points higher compared to first cars and cars from single-car households. This result is stable against variation of driving range and of the tolerated number of days requiring adaptation. Furthermore, the range needed to cover all driving needs for about 70% of the vehicles is only 220 km for second cars compared to 390 km for the average car. We can further confirm that second cars have higher market viability from a total cost of ownership perspective. Here, the second cars achieve a 10 percentage points higher market share compared to first cars, and to cars in single-car households for Swedish economic conditions, while for Germany the corresponding figure is 2 percentage points. Our results are important for understanding the market viability of current and near-future BEVs.     

Network equilibrium models with battery electric vehicles

The limited driving ranges, the scarcity of recharging stations and potentially long battery recharging or swapping time inevitably affect route choices of drivers of battery electric vehicles (BEVs). When traveling between their origins and destinations, this paper assumes that BEV drivers select routes and decide battery recharging plans to minimize their trip times or costs while making sure to complete their trips without running out of charge. With different considerations of flow dependency of energy consumption of BEVs and recharging time, three mathematical models are formulated to describe the resulting network equilibrium flow distributions on regional or metropolitan road networks. Solution algorithms are proposed to solve these models efficiently. Numerical examples are presented to demonstrate the models and solution algorithms.