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.     

A network wide simulation strategy of alternative fuel vehicles

This paper presents an integrated simulator “CUIntegration” to evaluate routing strategies based on energy and/or traffic measures of effectiveness for any Alternative Fuel Vehicles (AFVs). The CUIntegration can integrate vehicle models of conventional vehicles as well as AFVs developed with MATLAB-Simulink, and a roadway network model developed with traffic microscopic simulation software VISSIM. The architecture of this simulator is discussed in this paper along with a case study in which the simulator was utilized for evaluating a routing strategy for Plug-in Hybrid Electric Vehicles (PHEVs) and Electric Vehicles (EVs). The authors developed a route optimization algorithm to guide an AFV based on that AFV driver’s choice, which included; finding a route with minimum (1) travel time, (2) energy consumption or (3) a combination of both. The Application Programming Interface (API) was developed using Visual Basic to simulate the vehicle models/algorithms developed in MATLAB and direct vehicles in a roadway network model developed in VISSIM accordingly. The case study included a section of Interstate 83 in Baltimore, Maryland, which was modeled, calibrated and validated. The authors considered a worst-case scenario with an incident on the main route blocking all lanes for 30 min. The PHEVs and EVs were represented by integrating the MATLAB-Simulink vehicle models with the traffic simulator. The CUIntegration successfully combined vehicle models with a roadway traffic network model to support a routing strategy for PHEVs and EVs. Simulation experiments with CUIntegration revealed that routing of PHEVs resulted in cost savings of about 29% when optimized for the energy consumption, and for the same optimization objective, routing of EVs resulted in about 64% savings.     

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.     

Impacts of driving patterns on tank-to-wheel energy use of plug-in hybrid electric vehicles

We evaluate the implications of a range of driving patterns on the tank-to-wheel energy use of plug-in hybrid electric vehicles. The driving patterns, which reflect short distance, low speed, and congested city driving to long distance, high speed, and uncongested highway driving, are estimated using an approach that involves linked traffic assignment and vehicle motion models. We find substantial variation in tank-to-wheel energy use of plug-in hybrid electric vehicles across driving patterns. Tank-to-wheel petroleum energy use on a per kilometer basis is lowest for the city and highest for the highway driving, with the opposite holding for a conventional internal combustion engine vehicle.     

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.     

Modelling market diffusion of electric vehicles with real world driving data – German market and policy options

Plug-in electric vehicles (PEVs) have the potential to reduce green house gas emissions from the transport sector. However, the limited electric range of PEVs could impede their market introduction. Still some potential users are willing to pay more for PEVs. The combined effect of these and other influencing factors as well as the resulting future market evolution are unclear. Here, we study the market evolution of PEVs in Germany until 2020. Our results reveal a great deal of uncertainty in the market evolution of PEVs due to external conditions and the users’ willingness to pay. We find the future share of PEVs in German passenger car stock to range from 0.4% to almost 3% by 2020. Energy prices have a large impact on PEV market evolution as a 25% increase in fuel prices would double the number of PEVs in stock by 2020 compared to a reference scenario. We find a special depreciation allowance for commercial vehicles and a subsidy of 1000 Euro as the most effective and efficient monetary policy options. The high uncertainty of the market evolution implies that policies to foster market diffusion of PEVs should be dynamically adaptable to react to changing framework conditions.     

An activity-based assessment of the potential impacts of plug-in hybrid electric vehicles on energy and emissions using 1-day travel data

This paper assesses the potential energy profile impacts of plug-in hybrid electric vehicles and estimates gasoline and electricity demand impacts for California of their adoption. The results are based on simulations replicating vehicle usage patterns reported in 1-day activity and travel diaries based on the 2000–2001 California Statewide Household Travel Survey. Four charging scenarios are examined. We find that circuit upgrades to 240 V not only bring faster charging times but also reduce charging time differences between PHEV20 and PHEV60; home charging can potentially service 40–50% of travel distances with electric power for PHEV20 and 70–80% for PHEV60; equipping public parking spaces with charging facilities, can potentially convert 60–70% of mileage from fuel to electricity for PHEV20, and 80–90% for PHEV60; and afternoons are found to be exposed to a higher level of emissions.     

China’s electric car frustrations

By 2020, the vehicle population in China will likely exceed 280 million—exacerbating national energy security, urban air pollution, and traffic congestion. In response, many local and regional governments in China are pursuing an expanding array of measures to restrain growth in personal vehicle ownership and, along with the central government, reducing emissions and energy use of vehicles. One prominent strategy is the promotion of new energy vehicles, especially plug-in electric vehicles (PEVs). Large subsidies were offered—up to $27,600 (171,000 RMB) per vehicle in some regions, including almost $9200 (57,000 RMB) from the central government—which suggests that China is making a major commitment to PEVs. But sales have been meager. In 2013, only 17,600 PEVs, mostly buses and utility trucks, were sold, less than 0.1% of total civilian vehicle sales. Several factors explain the failure of PEV sales to take off: (1) protectionism by local governments; (2) uncertainty over which electric-drive vehicle technologies to promote and what consumers are willing to pay, (3) lagging investments in charging infrastructure, and (4) conservative investment behavior by automakers and battery manufacturers. The central government issued directives to local governments in late 2013 to reduce barriers to out-of-town companies, resulting in modest sales increases in early 2014, but a more coherent, broader, and effective set of policies, incentives, and strategies are needed to overcome consumer and industry resistance and the lack of charging infrastructure.     

Is awareness of public charging associated with consumer interest in plug-in electric vehicles?

Policymakers often seek to increase the visibility of plug-in electric vehicle (PEV) chargers in public locations in effort to build familiarity and interest in PEVs. However, it is not clear if the visibility of public charging stations actually has an impact on PEV demand. The purposes of the present study are to (1) assess the current levels of visibility for public PEV charging infrastructure within Canada and (2) identify whether or not a statistically significant relationship exists between consumer awareness of public charging infrastructure and interest in purchasing a PEV. We use data collected from a sample of 1739 Canadian new-vehicle buyers in 2013. About 18% of Canadian respondents have seen at least one public charger, while the proportion is highest in British Columbia (31%). We find a significant bivariate relationship between public charger awareness and PEV interest. However, when controlling for multiple explanatory variables in regression analyses, the relationship is weak or non-existent. While perceived existence of at least one charger exhibits no significant relationship with PEV interest, perceived existence of multiple chargers can have a weak but significant relationship. Thus, public charger awareness is not a strong predictor of PEV interest; other variables are more important, such as the availability of level 1 (110/120-volt) charging at home.