The impact of car specifications,prices and incentives for battery electric vehicles in Norway: Choices of heterogeneous consumers |
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| Affiliation: | 1. Department of Civil and Environmental Engineering, Carnegie Mellon University, Pittsburgh, PA 15213, USA;2. Heinz College, Carnegie Mellon University, Pittsburgh, PA 15213, USA;3. Division of Physical Resource Theory, Chalmers University of Technology, 412 58 Göteborg, Sweden;1. University of California, Davis, Institute of Transportation Studies, 1605 Tilia Street, Davis, CA 95616, USA;2. California Air Resources Board, PO Box 2815, Sacramento, CA 95812, USA;1. School of Electrical and Computer Engineering, Cornell University, Ithaca, NY 14853, USA;2. Dyson School of Applied Economics & Management, Cornell University, Ithaca, NY 14853, USA;1. Statistics Norway, Akersveien 26, 0177 Oslo, Norway;2. Economic Department, Norwegian University of Science and Technology, N-7491 Trondheim, Norway;1. Plug-in Hybrid and Electric Vehicle Research Center, Institute of Transportation Studies, University of California, Davis, United States;2. Blue Vine Consultants, Birmingham, United Kingdom |
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| Abstract: | Electric vehicles (EVs), specifically Battery EVs (BEVs), can offer significant energy and emission savings over internal combustion engine vehicles. Norway has a long history of research and government incentives for BEVs. The BEV market in Norway allows us to fully examine consumers’ BEV choices influenced by car specifications, prices and government incentives (public bus lanes access, toll waiver and charging stations). The Random-Coefficient Discrete Choice Model (referred to as the BLP model) is applied to understand the choices of heterogeneous personal consumers and business buyers. Our study is instantiated on the entire EV sales data in Norway from 2011 to 2013, as well as a set of demographics at the municipality level. The results suggest significant positive effects of BEV technology improvement, space, toll waiver and charging station density on EV demand for both personal consumers and business buyers. However, the effects on business buyers may be generally less pronounced than on personal consumers. Interestingly, bus lanes access demonstrates a negative impact for personal consumers, possibly due to consumers’ concern regarding bus lane congestion. In addition, preferences on the BEV price can vary statistically among consumers with different income levels. Compared to the BEV technology development, demographical features and municipal incentives may have generally less impacts on market shares within the BEV market. |
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| Keywords: | Electric vehicle BLP model Incentives Heterogeneous consumers |
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