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The effects of electricity pricing on PHEV competitiveness

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  • Huang, Shisheng
  • Hodge, Bri-Mathias S.
  • Taheripour, Farzad
  • Pekny, Joseph F.
  • Reklaitis, Gintaras V.
  • Tyner, Wallace E.

Abstract

Plug-in hybrid electric vehicles (PHEVs) will soon start to be introduced into the transportation sector, thereby raising a host of issues related to their use, adoption and effects on the electricity sector. Their introduction has the potential to significantly reduce carbon emissions from the transportation sector, which has led to government policies aimed at easing their introduction. If their widespread adoption is set as a target it is imperative to consider the effects of existing policies that may increase or decrease their adoption rate. In this study, we present a micro level electricity demand model that can gauge the effects of PHEVs on household electricity consumption and the subsequent economic attractiveness of the vehicles. We show that the electricity pricing policy available to the consumer is a very significant factor in the economic competitiveness of PHEVs. Further analysis shows that the increasing tier electricity pricing system used in California will substantially blunt adoption of PHEVs in the state; and time of use electricity pricing will render PHEVs more economically attractive in any state.

Suggested Citation

  • Huang, Shisheng & Hodge, Bri-Mathias S. & Taheripour, Farzad & Pekny, Joseph F. & Reklaitis, Gintaras V. & Tyner, Wallace E., 2011. "The effects of electricity pricing on PHEV competitiveness," Energy Policy, Elsevier, vol. 39(3), pages 1552-1561, March.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:3:p:1552-1561
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    References listed on IDEAS

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    2. Zhang, Qi & Mclellan, Benjamin C. & Tezuka, Tetsuo & Ishihara, Keiichi N., 2013. "A methodology for economic and environmental analysis of electric vehicles with different operational conditions," Energy, Elsevier, vol. 61(C), pages 118-127.
    3. Liu, Hu-Chen & You, Xiao-Yue & Xue, Yi-Xi & Luan, Xue, 2017. "Exploring critical factors influencing the diffusion of electric vehicles in China: A multi-stakeholder perspective," Research in Transportation Economics, Elsevier, vol. 66(C), pages 46-58.
    4. Dumortier, Jerome & Siddiki, Saba & Carley, Sanya & Cisney, Joshua & Krause, Rachel M. & Lane, Bradley W. & Rupp, John A. & Graham, John D., 2015. "Effects of providing total cost of ownership information on consumers’ intent to purchase a hybrid or plug-in electric vehicle," Transportation Research Part A: Policy and Practice, Elsevier, vol. 72(C), pages 71-86.
    5. Tang, Chen & Sprecher, Benjamin & Tukker, Arnold & Mogollón, José M., 2021. "The impact of climate policy implementation on lithium, cobalt and nickel demand: The case of the Dutch automotive sector up to 2040," Resources Policy, Elsevier, vol. 74(C).
    6. Jung, Jaesung & Cho, Yongju & Cheng, Danling & Onen, Ahmet & Arghandeh, Reza & Dilek, Murat & Broadwater, Robert P., 2013. "Monte Carlo analysis of Plug-in Hybrid Vehicles and Distributed Energy Resource growth with residential energy storage in Michigan," Applied Energy, Elsevier, vol. 108(C), pages 218-235.
    7. Li, Zhe & Ouyang, Minggao, 2011. "The pricing of charging for electric vehicles in China—Dilemma and solution," Energy, Elsevier, vol. 36(9), pages 5765-5778.
    8. Friedman, Lee S., 2011. "The importance of marginal cost electricity pricing to the success of greenhouse gas reduction programs," Energy Policy, Elsevier, vol. 39(11), pages 7347-7360.
    9. Hayn, Marian & Bertsch, Valentin & Zander, Anne & Nickel, Stefan & Fichtner, Wolf, 2016. "The impact of electricity tariffs on residential demand side flexibility," Working Paper Series in Production and Energy 14, Karlsruhe Institute of Technology (KIT), Institute for Industrial Production (IIP).
    10. Dumortier, Jerome & Siddiki, Saba & Carley, Sanya & Cisney, Joshua & Krause, Rachel & Lane, Bradley & Rupp, John & Graham, John, 2015. "Effects of Life Cycle Cost Information Disclosure on the Purchase Decision of Hybrid and Plug-In Vehicles," IU SPEA AgEcon Papers 198643, Indiana University, IU School of Public and Environmental Affairs.
    11. Huang, Shisheng & Safiullah, Hameed & Xiao, Jingjie & Hodge, Bri-Mathias S. & Hoffman, Ray & Soller, Joan & Jones, Doug & Dininger, Dennis & Tyner, Wallace E. & Liu, Andrew & Pekny, Joseph F., 2012. "The effects of electric vehicles on residential households in the city of Indianapolis," Energy Policy, Elsevier, vol. 49(C), pages 442-455.
    12. Richa, Kirti & Babbitt, Callie W. & Gaustad, Gabrielle & Wang, Xue, 2014. "A future perspective on lithium-ion battery waste flows from electric vehicles," Resources, Conservation & Recycling, Elsevier, vol. 83(C), pages 63-76.

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