Demand forecasting of diesel passenger car considering consumer preference and government regulation in South Korea

Changing market regulations in South Korea have allowed diesel-fueled passenger cars in the domestic market. The diffusion of diesel cars is tied to issues of environmental impact, energy supply and demand, and changes in tax revenue. Policymakers can influence demand for diesel vehicles to protect social welfare and to observe international environmental protection laws. On the supply side, carmakers need to know consumer preferences regarding new vehicles to arrive at development strategies.This study uses microsimulated demand forecasting to address these issues and predict consumer demand for diesel passenger cars. The model accommodates governmental policies and car attributes such as price and engine efficiency. We find that consumers will likely prefer diesel passenger cars to gasoline ones due to the low operation costs of the former in spite of high purchase price when diesel is relatively cheaper than gasoline. Finally we find that diesel passenger cars will capture a 42% market penetration ratio under the pricing system suggested by the Ministry of Environment of Korea.     

Technical efficiency of automobiles – A nonparametric approach incorporating carbon dioxide emissions

We conduct an empirical analysis of the technical efficiency of cars sold 2010 in Germany. The analysis is performed using traditional data envelopment analysis (DEA) as well as directional distance functions (DDF). The approach of DDF allows incorporating the reduction of carbon dioxide emissions as an environmental goal in the efficiency analysis. A frontier separation approach is used to gain deeper insight for diesel and gasoline cars. Natural gas driven cars and sport utility vehicles are also treated as different groups. The results show that the efficiency measurement is statistically yet not economically significantly influenced by the incorporation of carbon dioxide emissions. Moreover, we find that natural gas driven cars are highly inefficient even if the reduction of emissions is accounted for in the analysis.     

Using GPS-data to determine optimum electric vehicle ranges: A Michigan case study

Fuel-switching personal transportation from gasoline to electricity offers many advantages, including lower noise, zero local air pollution, and petroleum-independence. But alleviations of greenhouse gas (GHG) emissions are more nuanced, due to many factors, including the car’s battery range. We use GPS-based trip data to determine use type-specific, GHG-optimized ranges. The dataset comprises 412 cars and 384,869 individual trips in Ann Arbor, Michigan, USA. We use previously developed algorithms to determine driver types, such as using the car to commute or not. Calibrating an existing life cycle GHG model to a forecast, low-carbon grid for Ann Arbor, we find that the optimum range varies not only with the drive train architecture (plugin-hybrid versus battery-only) and charging technology (fast versus slow) but also with the driver type. Across the 108 scenarios we investigated, the range that yields lowest GHG varies from 65 km (55+ year old drivers, ultrafast charging, plugin-hybrid) to 158 km (16–34 year old drivers, overnight charging, battery-only). The optimum GHG reduction that electric cars offer – here conservatively measured versus gasoline-only hybrid cars – is fairly stable, between 29% (16–34 year old drivers, overnight charging, battery-only) and 46% (commuters, ultrafast charging, plugin-hybrid). The electrification of total distances is between 66% and 86%. However, if cars do not have the optimum range, these metrics drop substantially. We conclude that matching the range to drivers’ typical trip distances, charging technology, and drivetrain is a crucial pre-requisite for electric vehicles to achieve their highest potential to reduce GHG emissions in personal transportation.     

Expanding scope of hybrid choice models allowing for mixture of social influences and latent attitudes: Application to intended purchase of electric cars

Recently, policy makers’ expectations about the role of electric cars in reducing emissions have risen substantially. In parallel, academic research on purchase intentions has dramatically increased. Originally, most studies have focused on utility attributes and price. More recently, several hybrid choice models have been estimated to include the impact of attitudes on choice probabilities. In addition, a few studies have caught the attention to social influence. In contributing to this line of research, this paper reports the results of an expanded hybrid choice, which simultaneously estimated all these different effects in a single integrated model of purchase intention. Results indicate that the model performs well. Costs considerations contribute most to the utility of electric cars. Social influence is less important, but there is also evidence that people tend to take it into consideration when there are positive public opinions about electric cars and the market share becomes almost half of friends of their social network. The intention to purchase an electric car is also influenced by attitudes about environmental concerns and technology acceptance.     

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.     

How much should gasoline be taxed when electric vehicles conquer the market? An analysis of the mismatch between efficient and existing gasoline taxes under emerging electric mobility

The taxation of gasoline is characterized by large variability across countries and recent research has analyzed existing gasoline tax levels from an economic efficiency point of view focusing on conventional internal combustion engine vehicles. Most studies find that existing fuel tax rates do not coincide with economically efficient levels. As long as policymakers do not take action to reduce the resulting efficiency gap, there will be an ongoing welfare loss to the economy. However, the composition of passenger car fleets will probably be subject to fundamental changes in the (near) future due to the emergence of electric mobility. This raises the question of whether the mismatch between current and efficient fuel taxation will persist, shrink, or even exacerbate under emerging electric mobility. This paper aims at answering this question by determining the structure and level of optimal gasoline taxes in the presence of electric vehicles (EVs). First, the optimal (nationwide) gasoline tax is analytically derived employing a general equilibrium approach. It is shown that differences in traffic related marginal external costs among fuel powered cars and EVs affect the corrective Pigouvian component of the optimal gasoline tax while a differential tax treatment influences the fiscal rational of the tax. Second, the model is applied to Germany using differentiated data on e.g. external costs and behavioral responses. Under a wide range of scenarios, the present analyses indicate a strong relationship between optimal gasoline taxes and electric mobility, calling for a downward adjustment of efficient gasoline taxes. The effect is mainly driven by financial incentives for purchasing and using EVs. Since fuel is likely to be undertaxed in many countries, the emergence of electric mobility will therefore close the gap between gasoline taxes in place and economically efficient taxes. On the other side, it will increase the efficiency gap in those countries where gasoline is overtaxed. This also has important implications for policy concerned with environmental objectives. Pushing electric mobility seriously and at the same time taxing gasoline efficiently could actually prevent sufficient CO₂ emission savings. However, at least in the case of Germany, even a downward adjusted optimal gasoline tax under electric mobility is likely to be higher than the current (non-optimal) tax.     

Electric vehicles: How much range is required for a day’s driving?

One full year of high-resolution driving data from 484 instrumented gasoline vehicles in the US is used to analyze daily driving patterns, and from those infer the range requirements of electric vehicles (EVs). We conservatively assume that EV drivers would not change their current gasoline-fueled driving patterns and that they would charge only once daily, typically at home overnight. Next, the market is segmented into those drivers for whom a limited-range vehicle would meet every day’s range need, and those who could meet their daily range need only if they make adaptations on some days. Adaptations, for example, could mean they have to either recharge during the day, borrow a liquid-fueled vehicle, or save some errands for the subsequent day. From this analysis, with the stated assumptions, we infer the potential market share for limited-range vehicles. For example, we find that 9% of the vehicles in the sample never exceeded 100 miles in one day, and 21% never exceeded 150 miles in one day. These drivers presumably could substitute a limited-range vehicle, like electric vehicles now on the market, for their current gasoline vehicle without any adaptation in their driving at all. For drivers who are willing to make adaptations on 2 days a year, the same 100 mile range EV would meet the needs of 17% of drivers, and if they are willing to adapt every other month (six times a year), it would work for 32% of drivers. Thus, it appears that even modest electric vehicles with today’s limited battery range, if marketed correctly to segments with appropriate driving behavior, comprise a large enough market for substantial vehicle sales. An additional analysis examines driving versus parking by time of day. On the average weekday at 5 pm, only 15% of the vehicles in the sample are on the road; at no time during the year are fewer than 75% of vehicles parked. Also, because the return trip home is widely spread in time, even if all cars plug in and begin charging immediately when they arrive home and park, the increased demand on the electric system is less problematic than prior analyses have suggested.     

Electric vehicles and the urban environment

Abstract

Due to the increased traffic volume, especially in urban areas, cars have become the dominant source of atmospheric pollution. Actions taken to limit the pollution have not been able to counteract the polluting effect of this increase in cars. Limited petroleum resources have initiated the search for alternative fuels for vehicles. These alternatives, except for hydrogen and electricity, will however only give a limited decrease of pollution and for some components, such as aldehydes, the pollution will increase.

Electric vehicles are attractive from both energy and environmental points of view and substantial development programmes are devoted to high energy density batteries which are expected to increase the range and market for this alternative.

The scope of this paper is to compare the overall atmospheric pollution for electric vehicles with the corresponding figures for internal combustion engined (ICE) vehicles using either gasoline or such alternatives as methanol and liquid petroleum gas.

It is shown that the total atmospheric emission for electric vehicles, including what is produced from the power plant, would on a per mile basis be 20% of the comparative figure for an ICE vehicle meeting Californian legislation, which is among the most stringent in the world. For ground emission, which is the most important parameter regarding influence on man and environment the corresponding figure will be substantially lower. Also, the noise level for electric vehicles is radically lower than for cars with internal combustion engines.     

Implications of current household vehicle ownership and use patterns on the feasibility of electric cars

Electric cars provide the convenience and mobility of internal combustion engine vehicles without their dependence on fossil fuels or their associated environmental problems. While range constraints continue to limit their ultimate market acceptance, recent changes in the automotive marketplace have made American consumers more energy conscious. This paper examines a recently conducted U.S. survey of household travel behavior. The objective of the analysis is to determine the implications of observed vehicle ownership and use patterns on the feasibility of limited performance vehicles. Several factors are identified which serve to enhance the potential market penetration of electric cars. Included here are the recent growth in multiple vehicle ownership, and significant functional specialization in household allocation of vehicle use. On the other hand, it is pointed out that the substitutability of electric cars with the majority of currently owned vehicles is not clear by virtue of either their seating capacity, luggage space, or other specialized characteristics. Moreover, it is shown that the majority of secondary household cars are purchased used, which raises questions on the cost competitiveness of electric cars.The analysis of household daily driving range confirms the finding from previous studies that currently available electric vehicle technology can serve over 95 percent of vehicle travel requirements. However, serious flaws are pointed out in the use of cross sectional travel diaries for such analyses, raising questions as to the validity of the results. Overall, it is concluded that the ultimate potential size of the electric vehicle market with current technology is about one third of U.S. household vehicles, representing approximately one fifth of total non-commercial VKT. However, more research is needed to assess whether functionally feasible electric vehicles can actually be competitive under market conditions.     

Fuel economy of hybrid-electric versus conventional gasoline vehicles in real-world conditions: A case study of cold cities in Quebec,Canada

This paper investigates the fuel efficiency of commercial hybrid electric vehicles (HEVs) and compares their performance with respect to standard gasoline vehicles in the context of cold Canadian urban environments. The effect of different factors on fuel efficiency is studied including road driving conditions (link type, city size), temperature, speed, cold-starts and eco-driving training. For this study, fuel consumption data at the link level in real-world conditions was used from a sample of 74 instrumented vehicles. From the study fleet, 21 vehicles were HEVs. Among other results, the beneficial fuel efficiency merits of hybrid vehicles were demonstrated with respect to gasoline cars, in particular at low speeds and in urban (city) environments. After controlling for other factors, sedan HEVs were 28% more efficient than sedan gasoline vehicles. However, the low temperatures (below 0 °C) observed regularly during winter season in the study cities were identified as a detrimental factor to fuel economy. In winter, the fuel efficiency of HEVs decrease about 20% with respect to summer. Other factors such as eco-driving training, city size, cold start and vehicle type were also found to be statistically significant.     

Gas anxiety and the charging choices of plug-in hybrid electric vehicle drivers

Plug-in hybrid electric vehicles (PHEVs) can provide many of the benefits of battery electric vehicles (BEVs), such as reduced petroleum consumption and greenhouse gas emissions, without the “range anxiety” that can accompany driving a vehicle with limited range when there are few charging opportunities. However, evidence indicates that PHEVs are often plugged in more frequently than BEVs in practice. This is somewhat paradoxical: drivers for whom plugging in is optional tend to do so more frequently than those for whom it is necessary. This has led to the coining of a new term – “gas anxiety” – to describe the apparent desire of PHEV drivers to avoid using gasoline. In this paper, we analyze the variables influencing the charging choices of PHEV owners, testing whether drivers express preferences consistent with the concept of gas anxiety. We analyze data collected in a web-based stated preference survey using a latent class logit model. The results reveal two classes of decision-making patterns among the survey respondents: (1) those who weight the cost of gasoline and the cost of recharging approximately equally (the cost-minimizing class), and (2) those who weight the cost gasoline more heavily than the cost of recharging (the gas anxiety class). Respondents in the gas anxiety class expressed a willingness to recharge at a charging station even when doing so would cost approximately four times as much as the cost of the gasoline avoided. While the gas anxiety class represents the majority of our sample, more recent PHEV adopters are more likely to be in the cost-minimizing class. Looking forward, this suggests that public charging station operators may need to price charging competitively with gasoline on a per-mile basis to attract PHEV owners.     

Analysis of plug-in hybrid electric vehicles’ utility factors using GPS-based longitudinal travel data

The benefit of using a PHEV comes from its ability to substitute gasoline with electricity in operation. Defined as the proportion of distance traveled in the electric mode, the utility factor (UF) depends mostly on the battery capacity, but also on many other factors, such as travel pattern and recharging pattern. Conventionally, the UFs are calculated based on the daily vehicle miles traveled (DVMT) by assuming motorists leave home in the morning with a full battery, and no charge occurs before returning home in the evening. Such an assumption, however, ignores the impact of the heterogeneity in both travel and charging behavior, such as going back home more than once in a day, the impact of available charging time, and the price of gasoline and electricity. Moreover, the conventional UFs are based on the National Household Travel Survey (NHTS) data, which are one-day travel data of each sample vehicle. A motorist’s daily travel distance variation is ignored. This paper employs the GPS-based longitudinal travel data (covering 3–18 months) collected from 403 vehicles in the Seattle metropolitan area to investigate how such travel and charging behavior affects UFs. To do this, for each vehicle, we organized trips to a series of home and work related tours. The UFs based on the DVMT are found close to those based on home-to-home tours. On the other hand, it is seen that the workplace charge opportunities significantly increase UFs if the CD range is no more than 40 miles.     

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.     

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.     

An assessment of UK drivers’ attitudes regarding the forthcoming ban on the sale of petrol and diesel vehicles

The purpose of the study was to predict how drivers of petrol or diesel cars might vote in a ‘Yes/No’ referendum concerning the UK government’s decision to ban from 2040 onwards the sale of all new non-electric vehicles. Five main factors were hypothesised to influence voting intention: a person’s (i) level of environmental concern, (ii) attitude towards electric cars (measured via an Implicit Association Test), (iii) belief about the importance of air pollution, (iv) driving requirements, and (v) reaction to the cost of the ban to the individual (assessed using a contingency valuation approach). The study also examined possible determinants of attitudes to electric vehicles, e.g., whether an individual was a ‘technology enthusiast’, had prior knowledge of and searched for knowledge about electric vehicles, and whether a person had played an online game where the player assumed the identity of an electric car driver. A structural equation model was developed and tested on a sample of 675 UK drivers, none of whom had ever owned or driven an electric car. The results suggested a good fit of the model to the data, except that neither environmental concern nor belief in the importance of clean air affected attitude to electric cars. Also, high levels of environmental concern did not motivate people to search for knowledge about electric vehicles. Social marketing campaigns that will be needed to precede the ban should focus on its health benefits, and not target particular age groups, gender, or whether a participant had children.     

Means of transport and ontological security: Do cars provide psycho-social benefits to their users?

This paper presents some empirical evidence on the psycho-social benefits people seem to derive from their cars based on in-depth interviews with a sample of car owners and non-car owners in the West of Scotland. We suggest that psycho-social benefits of protection, autonomy and prestige may help to explain people's attachment to cars and also why studies have found consistently that car owners are healthier than non-car owners. In our study cars were seen to provide protection from undesirable people events, and a comfortable cocoon (but not as providing protection against accidents). Cars provided autonomy because car use was seen as being more convenient, reliable and providing access to more destinations than public transport. Cars were seen to confer prestige and other socially desirable attributes such as competence, skill and masculinity. We think that it is important for policy makers to consider how to make public transport more attractive by increasing its potential to provide similar sorts of benefits, and to do so by targetting the different needs of various population groups.     

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.     

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

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

Consumer attitudes about electric cars: Pricing analysis and policy implications

As electric vehicles (EVs) become more readily available, sales will depend on consumers’ interest and understanding. A survey of consumer attitudes on electric cars was conducted in Manitoba from late 2011 to early 2012. It utilizes two price assessment methods. The van Westendorp price sensitivity method (PSM) shows the acceptable price range for EVs to be $22,000–27,500. This range closely matches average price range for sales of conventional cars during the same period. The willingness-to-pay method reveals consumers are unwilling to pay large premiums for EVs, even when given information on future fuel savings. A consumer group with experience or exposure to EVs is somewhat different. Nearly 25% of these people are willing to pay a premium of up to $10,000. Different interpretations can be drawn from these responses, calling for further research. An apparent policy opportunity involves consumer education to enhance knowledge and facilitate EV purchase decisions. Survey results also support the hypothesis that EV rollout has focused too much on technology, and not enough on consumers.