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Analysis of product efficiency of hybrid vehicles and promotion policies

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  • Choi, Hyundo
  • Oh, Inha

Abstract

The key aim of this study is to evaluate the product efficiency of current hybrid vehicles and suggest effective policies to promote hybrid vehicles in the Korean automobile market and development trends of hybrid vehicles. The efficiency levels for car models sold in Korea, including hybrid ones, were measured using the recently developed discrete additive data envelopment analysis (DEA) model that reflects consumer preference. The result of the analysis shows that current hybrid vehicles on the market are still at lower competitive advantage than traditional car models with conventional combustion engines and we can suggest a mix of incentive policies to promote the competitiveness of hybrid vehicles. In addition, we also identify two distinctive trends of hybrid vehicle development: environment-oriented hybrid vehicles and performance-oriented hybrid vehicles. It implies that the government should take account of development trends of hybrid vehicles to achieve the policy goals in designing support schemes and automobile companies that are willing to develop hybrid vehicles can also gain some insights for making strategic decisions.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 38 (2010)
Issue (Month): 5 (May)
Pages: 2262-2271

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Handle: RePEc:eee:enepol:v:38:y:2010:i:5:p:2262-2271

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Web page: http://www.elsevier.com/locate/enpol

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Keywords: Hybrid vehicles Data envelopment analysis Korea;

References

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  1. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
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  3. Christos Papahristodoulou, 1997. "A DEA model to evaluate car efficiency," Applied Economics, Taylor & Francis Journals, vol. 29(11), pages 1493-1508.
  4. Green, Paul E & Srinivasan, V, 1978. " Conjoint Analysis in Consumer Research: Issues and Outlook," Journal of Consumer Research, University of Chicago Press, vol. 5(2), pages 103-23, Se.
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  6. Doyle, JR & Green, RH, 1991. "Comparing products using data envelopment analysis," Omega, Elsevier, vol. 19(6), pages 631-638.
  7. Layton, David F., 2000. "Random Coefficient Models for Stated Preference Surveys," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 21-36, July.
  8. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
  9. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
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Cited by:
  1. Rao, Zhonghao & Wang, Shuangfeng, 2011. "A review of power battery thermal energy management," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4554-4571.
  2. Xu, X.M. & He, R., 2014. "Review on the heat dissipation performance of battery pack with different structures and operation conditions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 301-315.
  3. Liu, Yingqi & Kokko, Ari, 2013. "Who does what in China’s new energy vehicle industry?," Energy Policy, Elsevier, vol. 57(C), pages 21-29.

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