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.     

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.     

Motor fuel choice: An econometric analysis

Concerns about air pollution and energy security have stimulated interest in alternative automotive fuels and in vehicles that can use multiple fuels and combinations of fuels. Consumer behavior in the choice of motor fuel for flexible-fuel vehicles is likely to be a key factor in the creation and stability of markets for new fuels. The sensitivity of fuel choice to fuel prices is investigated here using data on purchases of regular, premium, leaded, and unleaded grades of gasoline. Multinomial logit choice models are estimated for the years 1982, 1983, and 1984. Consumer choices are found to be highly elastic with respect to fuel prices. New fuels will have to be priced within a few cents of existing fuels to capture significant market shares. Consumers also exhibit strong preferences for the fuel type specified by law (unleaded vs. leaded) for their vehicles. Thus, legal restrictions could play an important role in stabilizing alternative fuels markets. The typical consumer is willing to pay 5–10 cents more per gallon for premium grade gasoline. The premium for premium has been increasing as increasing numbers of turbocharged and fuel-injected engines join the fleet, reflecting the fact that consumers are willing to pay more for a fuel if they believe their engines require it.     

Vehicle type choice under the influence of a tax reform and rising fuel prices

Differentiated vehicle taxes are considered by many a useful tool for promoting environmentally friendly vehicles. Various structures have been implemented in several countries, e.g. Ireland, France, The Czech Republic, and Denmark. In many countries the tax reforms have been followed by a steep change in new vehicle purchases toward more diesel vehicles and more fuel-efficient vehicles. The paper analyses to what extent a vehicle tax reform similar to the Danish 2007 reform may explain changes in purchasing behaviour. The paper investigates the effects of a tax reform, fuel price changes, and technological development on vehicle type choice using a mixed logit model. The model allows a simulation of the effect of car price changes that resemble those induced by the tax reform. This effect is compared to the effects of fuel price changes and technology improvements. The simulations show that the effect of the tax reform on fuel efficiency is similar to the effect of rising fuel prices while the effect of technological development is much larger. The conclusion is that while the tax reform appeared in the same year as a large increase in fuel efficiency, it seems likely that it only explains a small part of the shift in fuel efficiency that occurred and that the main driver was the technological development.     

A framework for analyzing rank-ordered data with application to automobile demand

In this paper, we develop a general random utility framework for analyzing data on individuals’ rank-orderings. Specifically, we show that in the case with three alternatives one can express the probability of a particular rank-ordering as a simple function of first choice probabilities. This framework is applied to specify and estimate models of household demand for conventional gasoline cars and alternative fuel vehicles in Shanghai based on rank-ordered data obtained from a stated preference survey. Subsequently, the framework is extended to allow for random effects in the utility specification to allow for intrapersonal correlation in tastes across stated preference questions. The preferred model is then used to calculate demand probabilities and elasticities and the distribution of willingness-to-pay for alternative fuel vehicles.     

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.     

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.     

Stated preference methods and travel demand forecasting: An examination of the scale factor problem

Stated Preference choice models may have incorrect scale properties, because their coefficients incorporate the influence of factors which do not affect actual behaviour, and this paper examines the consequences of this scale factor problem for demand forecasting. Empirical evidence is presented which suggests that the scale factor problem is not serious and the results are generalised to consider the consequences of the scale factor problem in situations other than those prevailing in the empirical example. The paper also examines the predictive performance of three procedures for forecasting changes to an existing demand in the light of the scale factor problem. This indicates that reliance should not be placed on the incremental logit model and that a simple procedure which amends a standard logit model forecast in the light of its performance in explaining the observed initial demand is generally preferred to unadjusted logit model forecasts.     

Incentivizing alternative fuel vehicles: the influence of transport policies,attitudes and perceptions

This paper aims to evaluate the influence of policies, attitudes and perceptions when incentivizing alternative fuel vehicles. The impact of possible policies such as gasoline taxes increases, purchase price subsidies, tax exemptions, and increases in fuel recharging station availability for alternative fuelled vehicles is evaluated using hybrid choice models. The models also allow assessing the sensitivity of latent variables (i.e., attitudes and perceptions) in the car purchase behaviour. The models are estimated using data from a stated choice survey collected in five Colombian cities. The latent variables are obtained from the rating of statements related to the transport system, environmental concern, vehicle preferences, and technology. The modelling approach includes regression between latent variables. Results show that environmental concern and the support for green transport policies have a positive influence on the intention to purchase alternative fuel vehicles. Meanwhile, people who reveal to be car-dependent prefer to buy standard fuelled vehicles. The analysis among cities shows similar trends in individual behaviour, although there are differences in attribute sensitivities. The policy scenario analysis revealed high sensitivity to capital cost and the need for extensive investments in refuelling stations for alternative fuel vehicles to become attractive. Nevertheless, all policies should not only be directed at infrastructure and vehicles but also be focused on user awareness and acceptance of the alternative fuel vehicles. The analysis suggests that in an environmentally conscious market, people prefer alternative fuels. However, if the transport policies support private transport, the market shares of alternative fuel vehicles will decrease.     

Solving network equilibrium problems on multimodal urban transportation networks with multiple user classes

The capacity of the high‐speed train to compete against travel demand in private vehicles is analysed. A hypothetical context analysed as the high‐speed alternative is not yet available for the route studied. In order to model travel demand, experimental designs were applied to obtain stated preference information. Discrete choice logit models were estimated in order to derive the effect of service variables on journey utility. From these empirical demand models, it was possible to predict for different travel contexts and individuals the capacity of the high‐speed train to compete with the car, so determining the impact of the new alternative on modal distribution. Furthermore, individual willingness to pay for travel time saving is derived for different contexts. The results allow us to confirm that the high‐speed train will have a significant impact on the analysed market, with an important shift of passengers to the new rail service being expected. Different transport policy scenarios are derived. The cost of travel appears to a great extent to be a conditioning variable in the modal choice. These results provide additional evidence for the understanding of private vehicle travel demand.     

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.     

Environmental life-cycle assessment of transit buses with alternative fuel technology

The paper presents a life-cycle assessment of costs and greenhouse gas emissions for transit buses deploying a hybrid input-output model to compare ultra-low sulfur diesel to hybrid diesel-electric, compressed natural gas, and hydrogen fuel-cell. We estimate the costs of emissions reductions from alternative fuel vehicles over the life cycle and examine the sensitivity of the results to changes in fuel prices, passenger demand, and to technological characteristics influencing performance and emissions. We find that the alternative fuel buses reduce operating costs and emissions, but increase life-cycle costs. The infrastructure requirement to deploy and operate alternative fuel buses is critical in the comparison of life-cycle emissions. Additionally, efficient bus choice is sensitive to passenger demand, but only moderately sensitive to technological characteristics, and that the relative efficiency of compressed natural gas buses is more sensitive to changes in fuel prices than that of the other bus types.     

Preferences for alternative fuel vehicles by Dutch local governments

Using a choice model, we estimate the preferences for alternative fuel vehicles by Dutch local governments. The analysis shows that local governments are willing to pay between 25% and 50% extra for an alternative fuel vehicle without a serious loss of utility. Further, local emissions are an important criterion on which to base a decision, especially for municipalities and provinces. We also calculate the utility for a number of prominent alternative fuel vehicles. We find that show that local governments value the battery electric vehicle and biogas internal combustion engine equally. It is important, however, that the time to refuel for electric vehicles is reduced to about 30 min.     

A practical concern about the relevance of alternative-specific constants for new alternatives in simple logit models

When a “new” alternative is introduced, post-estimation, into a logit model, analysis initially exclude an ASC or occasionally assume a correspondence with an existing alternative. Using a recent data set for mode and route choice, the paper highlights the forecasting implications of ignoring the ASC in the utility expression of a “new” alternative, and how sensitive the market shares are to the inclusion/ exclusion of the ASC.     

Willingness-to-pay for infrastructure investments for alternative fuel vehicles

This study investigates potential demand for infrastructure investment for alternative fuel vehicles by applying stated preference methods to a Japanese sample. The potential demand is estimated on the basis of how much people are willing to pay for alternative fuel vehicles under various refueling scenarios. Using the estimated parameters, the economic efficiency of establishing battery-exchange stations for electric vehicles is examined. The results indicate that infrastructural development of battery-exchange stations can be efficient when electric vehicle sales exceed 5.63% of all new vehicle sales. Further, we find a complementary relationship between the cruising ranges of alternative fuel vehicles and the infrastructure established.     

Railway station choice modelling: a review of methods and evidence

Since the first railway station choice studies of the 1970s, a substantial body of research on the topic has been completed, primarily in North America, the U.K. and the Netherlands. With many countries seeing sustained growth in rail passenger numbers, which is forecast to continue, station choice models have an important role to play in assessing proposals for new stations or service changes. This paper reviews the modelling approaches adopted, the factors found to influence station choice and the application of models to real-world demand forecasting scenarios. A consensus has formed around using the closed-form multinomial logit and nested logit models, with limited use of more advanced simulation-based models, and the direction effects of a range of factors have been consistently reported. However, there are questions over the validity of applying non-spatial discrete choice models to a context where spatial correlation will be present, in particular with regard to the models’ ability to adequately represent the abstraction behaviours resulting from competition between stations. Furthermore, there has been limited progress towards developing a methodology to integrate a station choice element into the aggregate models typically used to forecast passenger demand for new stations.     

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.     

A joint flexible econometric model system of household residential location and vehicle fleet composition/usage choices

Modeling the interaction between the built environment and travel behavior is of much interest to transportation planning professionals due to the desire to curb vehicular travel demand through modifications to built environment attributes. However, such models need to take into account self-selection effects in residential location choice, wherein households choose to reside in neighborhoods and built environments that are conducive to their lifestyle preferences and attitudes. This phenomenon, well-recognized in the literature, calls for the specification and estimation of joint models of multi-dimensional land use and travel choice processes. However, the estimation of such model systems that explicitly account for the presence of unobserved factors that jointly impact multiple choice dimensions is extremely complex and computationally intensive. This paper presents a joint GEV-based logit regression model of residential location choice, vehicle count by type choice, and vehicle usage (vehicle miles of travel) using a copula-based framework that facilitates the estimation of joint equations systems with error dependence structures within a simple and flexible closed-form analytic framework. The model system is estimated on a sample derived from the 2000 San Francisco Bay Area Household Travel Survey. Estimation results show that there is significant dependency among the choice dimensions and that self-selection effects cannot be ignored when modeling land use-travel behavior interactions.     

Heterogeneous consumer preferences for alternative fuel cars in China

This paper models consumer preferences for alternative fuel cars and conventional, petrol fueled cars in China. It compares discrete choice model specifications where each specification reflects how consumers choose between alternative fuel cars and conventional types of cars. We find that, in China, consumers differentiate between the types of alternative fuel cars and are more likely to consider switching from petrol fuel vehicles to hybrid than to electric cars. Segmentation analysis is used to explore groups of consumers and their likelihood of adopting alternative fuel cars.     

Are consumers willing to pay to let cars drive for them? Analyzing response to autonomous vehicles

Autonomous vehicles use sensing and communication technologies to navigate safely and efficiently with little or no input from the driver. These driverless technologies will create an unprecedented revolution in how people move, and policymakers will need appropriate tools to plan for and analyze the large impacts of novel navigation systems. In this paper we derive semiparametric estimates of the willingness to pay for automation. We use data from a nationwide online panel of 1260 individuals who answered a vehicle-purchase discrete choice experiment focused on energy efficiency and autonomous features. Several models were estimated with the choice microdata, including a conditional logit with deterministic consumer heterogeneity, a parametric random parameter logit, and a semiparametric random parameter logit. We draw three key results from our analysis. First, we find that the average household is willing to pay a significant amount for automation: about $3500 for partial automation and $4900 for full automation. Second, we estimate substantial heterogeneity in preferences for automation, where a significant share of the sample is willing to pay above $10,000 for full automation technology while many are not willing to pay any positive amount for the technology. Third, our semiparametric random parameter logit estimates suggest that the demand for automation is split approximately evenly between high, modest and no demand, highlighting the importance of modeling flexible preferences for emerging vehicle technology.