The market potential for plug-in hybrid and battery electric vehicles in Flanders: A choice-based conjoint analysis

This paper considers the market potential for battery electric and plug-in hybrid electric vehicles in Flanders, Belgium. Making use of a large-scale survey conducted in 2011 and applying a choice-based conjoint experiment, it is predicted that by 2020, battery electric vehicles could have a market share of about 5% of new vehicles, and plug-in hybrid electric vehicles could have a share of around 7%. By 2030, these figures could increase to 15% and 29%. The speed of up-take of electric vehicles, however, is sensitive to purchase costs.     

Market dynamics and indirect network effects in electric vehicle diffusion

The diffusion of electric vehicles (EVs) is studied in a two-sided market framework consisting of EVs on the one side and EV charging stations (EVCSs) on the other. A sequential game is introduced as a model for the interactions between an EVCS investor and EV consumers. A consumer chooses to purchase an EV or a conventional gasoline alternative based on the upfront costs of purchase, the future operating costs, and the availability of charging stations. The investor, on the other hand, maximizes his profit by deciding whether to build charging facilities at a set of potential EVCS sites or to defer his investments.The solution of the sequential game characterizes the EV-EVCS market equilibrium. The market solution is compared with that of a social planner who invests in EVCSs with the goal of maximizing the social welfare. It is shown that the market solution underinvests EVCSs, leading to slower EV diffusion. The effects of subsidies for EV purchase and EVCSs are also considered.     

Intent to purchase a plug-in electric vehicle: A survey of early impressions in large US cites

This paper examines consumer stated intent to purchase plug-in electric vehicles and assesses the factors that increase or decrease interest. We surveyed adult drivers in large US cities in early fall 2011, before vehicle manufacturers and dealers began marketing campaigns. The survey responses thus document early impressions of this transport technology. We find that, given current battery technology and public perceptions, overall stated intent to purchase or lease electric vehicles is low. Interest in plug-in hybrid technology is somewhat greater than interest in all-electric technology. Consumers who express early interest in adopting electric vehicles are typically highly educated, previous owners of conventional hybrids, environmentally sensitive, and concerned about dependence on foreign oil. Enhanced fuel economy, the primary tangible advantage of plug-in technology, is recognized as favorable by respondents but fails to exert a strong influence on purchasing intentions. Interest in plug-in electric vehicles is shaped primarily by consumers’ perceptions of electric vehicle disadvantages.     

Impact of vehicle usage on consumer choice of hybrid electric vehicles

We analyze the vehicle usage and consumer profile attributes extracted from both National Household Travel Survey and Vehicle Quality Survey data to understand the impact of vehicle usage upon consumers’ choices of hybrid electric vehicles in the US. In addition, the key characteristics of hybrid vehicle drivers are identified to determine the market segmentations of hybrid electric vehicles and the critical attributes to include in the choice model. After a compatibility test of two datasets, a pooled choice model combining both data sources illustrates the significant influences of vehicle usage upon consumers’ choices of hybrid electric vehicles. Even though the data-bases have in the past been used independently to study travel behavior and vehicle quality ratings, here we use them together.     

Symbolism in California’s early market for hybrid electric vehicles

This study explores the symbolic meanings being created, appropriated, and communicated by the owners of hybrid electric vehicles. As symbolic meanings are shown to be important to hybrid electric vehicle purchase and use, understanding the meanings, as well as their construction and communication, is essential for policy makers and others hoping to promote these new types of vehicles. Hybrid electric vehicles embody combinations of meanings that were previously unavailable from automobiles. Market observers who fail to recognize this struggle to explain why some people buy hybrid electric vehicles. They may characterize buyers as naı¨ve about calculating payback on fuel economy, or dismiss owners as image-seeking environmentalists. This research belies such simplistic explanations. Through the telling and analysis of buyers’ own stories, this study takes a robust approach to understanding the creation and spread of new symbolic meanings in the automotive market. Data were collected in ethnographic interviews with hybrid electric vehicle owners in the California, and analyzed using methods based on semiotic theory. In particular, the study explores how widely recognized social meanings (denotations) are connected to more personal meanings (connotations) and the effect that both types of meanings have on vehicle purchase and use.     

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.     

Combining Intermodal Transport With Electric Vehicles: Towards More Sustainable Solutions

Abstract

This paper analyses the feasibility of incorporating electric or hybrid vehicles in intermodal transport for the transportation of containers in the pre- and post haulage (PPH) operation. In Europe, the intermodal transport market is being strongly supported, as it is seen as one of the keystones of a sustainable mobility system policy. The introduction of environmentally friendly electric/hybrid vehicles for the pre- and post haulage operation would mean a further enhancement leading to a more complete ecological intermodal transport chain. PPH operations are usually no longer than 30 km, and, hence, could possibly be handled by electric or hybrid vehicles.

Hybrid electric vehicles (HEV) combine electric and other drive systems, such as internal combustion engines, gas turbines and fuel cells. Hybrid electric vehicles merge the zero pollution and high efficiency benefits of electric traction with the high fuel energy density benefits of an energy source or thermal engine. The use of electrically driven vehicles for goods distribution has already been successfully proven in international demonstration projects, such as ELCIDIS. Transport of intermodal units (such as ISO containers), however, requires electric/hybrid heavy-duty goods vehicles, which are not readily available on the market, but for which the technology exists.

Different possibilities are assessed as to their technical, financial, organizational and environmental feasibility and suitability. This analysis is based on a typical mission for pre-and post haulage operations, such as type of trips, distance, frequency, urban/suburban, etc.     

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.     

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.     

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.     

Socially optimal electric driving range of plug-in hybrid electric vehicles

This study determines the optimal electric driving range of plug-in hybrid electric vehicles (PHEVs) that minimizes the daily cost borne by the society when using this technology. An optimization framework is developed and applied to datasets representing the US market. Results indicate that the optimal range is 16 miles with an average social cost of $3.19 per day when exclusively charging at home, compared to $3.27 per day of driving a conventional vehicle. The optimal range is found to be sensitive to the cost of battery packs and the price of gasoline. When workplace charging is available, the optimal electric driving range surprisingly increases from 16 to 22 miles, as larger batteries would allow drivers to better take advantage of the charging opportunities to achieve longer electrified travel distances, yielding social cost savings. If workplace charging is available, the optimal density is to deploy a workplace charger for every 3.66 vehicles. Moreover, the diversification of the battery size, i.e., introducing a pair and triple of electric driving ranges to the market, could further decrease the average societal cost per PHEV by 7.45% and 11.5% respectively.     

Modeling adoption timing of autonomous vehicles: innovation diffusion approach

Autonomous vehicles (AVs) are expected to act as an economically-disruptive transportation technology offering several benefits to the society and causing significant changes in travel behavior and network performance. However, one of the critical issues that policymakers are facing is the absence of a sound estimation of their market penetration. This study is an effort to quantify the effect of different drivers on the adoption timing of AVs. To this end, we develop an innovation diffusion model in which individuals’ propensities to adopt a new technology such as AVs takes influence from a desire to innovate and a need to imitate the rest of the society. It also captures various sources of inter-personal heterogeneity. We found that conditional on our assumptions regarding the changes in market price of AVs over time, their market penetration in our study region (Chicago metropolitan area) will eventually reach 71.3%. Further, model estimation results show that a wide range of socio-demographic factors, travel pattern indicators, technology awareness, and perceptions of AVs are influential in people’s AV adoption timing decision. For instance, frequent long-distance travelers are found to make the adoption decision more innovatively while those who have experienced an accident in their lifetime are found to be more influenced by word of mouth.     

Life cycle emissions and cost model for urban light duty vehicles

The growth of vehicle sales and use internationally requires the consumption of significant quantities of energy and materials, and contributes to the deterioration of air-quality and climate conditions. Advanced propulsion systems and electric drive vehicles have substantially different characteristics and impacts. They require life cycle assessments and detailed comparisons with gasoline powered vehicles which, in turn, should lead to critical updates of traditional models and assumptions. For a comprehensive comparison of advanced and traditional light duty vehicles, a model is developed that integrates external costs, including emissions and time losses, with societal and consumer life cycle costs. Life cycle emissions and time losses are converted into costs for seven urban light duty vehicles. The results, which are based on vehicle technology characteristics and transportation impacts on environment, facilitate vehicle comparisons and support policy making in transportation. Substantially, more sustainable urban transportation can be achieved in the short-term by promoting policies that increase vehicle occupancy; in the intermediate-term by increasing the share of hybrid vehicles in the car market and in the long-term by the widespread use of electric vehicles. A sensitivity-analysis of life cost results revealed that vehicle costs change significantly for different geographical areas depending on vehicle taxation, pricing of gasoline, electric power and pollution. Current practices in carbon and air quality pricing favor oil and coal based technologies. However, increasing the cost of electricity from coal and other fossil fuels would increase the variable cost for electric vehicles, and tend to favor the variable cost of hybrid vehicles.     

What is the market potential of plug-in electric vehicles as commercial passenger cars? A case study from Germany

Commercial passenger cars are a possible early market segment for plug-in electric vehicles (PEVs). Compared to privately owned vehicles, the commercial vehicle segment is characterized by higher mileage and a higher share of vehicle sales in Germany. To this point, there are only few studies which analyze the commercial passenger car sector and arrive at contradictory results due to insufficient driving profile data with an observation period of only one day. Here, we calculate the market potential of PEVs for the German commercial passenger car sector by determining the technical and economical potential for PEVs in 2020 from multi-day driving profiles. We find that commercial vehicles are better suited for PEVs than private ones since they show higher average annual mileage and drive more regularly. About 87% of the analyzed three-week vehicle profiles can technically be fulfilled by battery electric vehicles (BEVs) with an electric driving range of about 110 km while plug-in hybrid electric vehicles (PHEVs) with an electric range of 40 km could obtain an electric driving share of 60% on average. In moderate energy price scenarios, PEVs can reach a market share of 2–4% in the German commercial passenger car sales by 2020 and especially the large commercial branches (Trade, Manufacturing, Administrative services and Other services) are important. However, our analysis shows a high sensitivity of results to energy and battery prices as well as electric consumptions.     

Why early adopters engage in interpersonal diffusion of technological innovations: An empirical study on electric bicycles and electric scooters

Early adopters promoting electric vehicles in their social network may speed up market uptake of this technology. Apart from their opinion leader status, few previous research details the motivations which turn early adopters into advocates for innovation who approach the non-adopters among their family and friends, or casual acquaintances.Drawing on a survey among 1398 e-bike and 133 e-scooter early adopters in Austria, personal drivers of engagement in interpersonal diffusion are investigated. Longitudinal data one year later for 157 e-bike users allows tests of causal relations. A complementary sample of 33 network peers illustrates the early adopters’ social impact.Early adopters engage actively in discussing product features, instigating trial behavior and recommending purchase. Analyses by structural equation modeling show that efforts at interpersonal diffusion are driven by opinion leadership, experienced product performance, and perceived normative expectations of others toward pro-environmental technologies. Mediator and moderator analyses underline that opinion leadership is conveyed upon early adopters because personal norms and technophilia qualify them as credible and competent for the specific topic of e-vehicles. Social norm interrelations point to dynamic interactions and discourse between early adopters and their addressees. Evidence from the peer sample suggests though that the persuasive impact of early adopters is small.To accelerate market entry of electric vehicles, public or private agencies should foremost approach early adopters scoring high in the identified drivers, and empower them in their role as multiplicators by providing pre-prepared product information and encouraging them to continuously address peers.     

Impact of electric vehicles on existing car usage: A mixed multiple discrete–continuous extreme value model approach

This study investigates how the introduction of electric vehicles may influence the usage of existing cars. A survey of 250 households in South Korea is used to analyze a future automobile market that includes electric vehicles taking into account the heterogeneity of consumer preferences and usage patterns. Based on consumer preferences, the future market share of various vehicles is estimated and the impact of promoting the usage of electric vehicles by government subsidization and tax incentives is analyzed.     

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.     

Modeling charging infrastructure impact on the electric vehicle market in China

The plug-in electric vehicle (PEV) is deemed as a critical technological revolution, and the governments are imposing various vehicle policies to promote its development. Meanwhile, the market success of PEVs depends on many aspects. This study integrates one’s use of charging infrastructure at home, public place and workplace into the market dynamics analysis tool, New Energy and Oil Consumption Credits (NEOCC) model, to systematically assess the charging infrastructure (home parking ratio, public charging opportunity, and charging costs) impact on PEV ownership costs and analyze how the PEV market shares may be affected by the attributes of the charging infrastructure. Compared to the charging infrastructure, the impact of battery costs is incontrovertibly decisive on PEV market shares, the charging infrastructure is still non-negligible in the PEV market dynamics. The simulation results find that the public charging infrastructure has more effectiveness on promoting the PEV sales in the PEV emerging market than it does in the PEV mature market. However, the improvement of charging infrastructure does not necessarily lead to a larger PEV market if the charging infrastructure incentives do not coordinate well with other PEV policies. Besides, the increase of public charging opportunities has limited motivations on the growth of public PEV fleets, which are highly correlated to the number of public fast charging stations or outlets. It also finds that more home parking spaces can stimulate more sales of personal plug-in hybrid electric vehicles instead of personal battery electric vehicles.     

A two-sided market platform analysis for the electric vehicle adoption: Firm strategies and policy design

This study explores how to facilitate the electric vehicle (EV) diffusion from a two-sided market platform competition. We develop a stylized model depicting the platform competition between electric and gasoline vehicles by combining indirect network effects of consumer and energy supplier sides as well as vehicle manufacturers’ profits. The findings of this study provide several meaningful strategic and policy implications for EV manufacturers and policymakers who wish to enhance EV diffusion. First, EV sales are significantly influenced by indirect network effects from the energy supplier side to the consumer side, and vice versa. This implies that EV manufacturers who wish to boost EV diffusion should implement a strategy providing energy suppliers with incentives to willingly join the EV platform. Second, the dynamic nature of the effects of energy costs on platform competition might render counter-intuitive evidence that the drop in oil prices does not always negatively influence EV sales. This requires EV manufacturers to prepare a contingent strategy adjusting to such unexpected conditions. Third, governments should consider the energy supplier side as well as the consumer side in designing EV diffusion policies. When governments have a very challenging EV diffusion target, a balanced policy, which treats both gasoline and electric vehicle technologies fairly, may be more effective than a consumer subsidy policy.     

Consumers’ willingness to pay for alternative fuel vehicles: A comparative discrete choice analysis between the US and Japan

This paper conducts a comparative discrete choice analysis to estimate consumers’ willingness to pay (WTP) for electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) on the basis of the same stated preference survey carried out in the US and Japan in 2012. We also carry out a comparative analysis across four US states. We find that on average US consumers are more sensitive to fuel cost reductions and alternative fuel station availability than are Japanese consumers. With regard to the comparative analysis across the four US states, consumers’ WTP for a fuel cost reduction in California is considerably greater than in the other three states. We use the estimates obtained in the discrete choice analysis to examine the EV/PHEV market shares under several scenarios. In a base case scenario with relatively realistic attribute levels, conventional gasoline vehicles still dominate both in the US and Japan. However, in an innovation scenario with a significant purchase price reduction, we observe a high penetration of alternative fuel vehicles both in the US and Japan. We illustrate the potential use of a discrete choice analysis for forward-looking policy analysis, with the future opportunity to compare its predictions against actual revealed choices. In this case, increased purchase price subsidies are likely to have a significant impact on the market shares of alternative fuel vehicles.