IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v116y2018icp531-546.html
   My bibliography  Save this article

The impact of business models on electric vehicle adoption: A latent transition analysis approach

Author

Listed:
  • Liao, Fanchao
  • Molin, Eric
  • Timmermans, Harry
  • van Wee, Bert

Abstract

It is often argued that successful market penetration of electric vehicles may not only rely on the characteristics of the technology but also on business models. However, empirical evidence for this is largely lacking. This study intends to fill this gap by assessing the impact of business models, in particular battery and vehicle leasing, on Electric Vehicle (EV) adoption. By conducting a stated choice experiment, we examine to what extent car drivers switch their choices between conventional and electric vehicles after business models become available. The results based on the discrete choice model suggest that leasing does not increase EV adoption at the aggregate level. However, a latent transition analysis shows that different groups with internally homogeneous preferences react differently to leasing options at the disaggregate level. The results indicate that 13% of the car drivers changed their preferences, albeit in different ways. Transition probabilities are particularly related to attitudes towards leasing and knowledge of EV. The results show that leasing is useful in facilitating EV adoption for certain groups, which can be identified by their individual characteristics. In addition to these substantial insights, this paper makes a contribution to the literature by demonstrating the potential of latent transition analysis in uncovering heterogeneity in behavioral changes induced by policy or strategy interventions, especially when changes can occur in opposite directions.

Suggested Citation

  • Liao, Fanchao & Molin, Eric & Timmermans, Harry & van Wee, Bert, 2018. "The impact of business models on electric vehicle adoption: A latent transition analysis approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 531-546.
    • Handle: RePEc:eee:transa:v:116:y:2018:i:c:p:531-546
    DOI: 10.1016/j.tra.2018.07.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856417310388
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tra.2018.07.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bohnsack, René & Pinkse, Jonatan & Kolk, Ans, 2014. "Business models for sustainable technologies: Exploring business model evolution in the case of electric vehicles," Research Policy, Elsevier, vol. 43(2), pages 284-300.
    2. Chorus, Caspar G. & Koetse, Mark J. & Hoen, Anco, 2013. "Consumer preferences for alternative fuel vehicles: Comparing a utility maximization and a regret minimization model," Energy Policy, Elsevier, vol. 61(C), pages 901-908.
    3. Arentze, Theo & Hofman, Frank & Timmermans, Harry, 2004. "Predicting multi-faceted activity-travel adjustment strategies in response to possible congestion pricing scenarios using an Internet-based stated adaptation experiment," Transport Policy, Elsevier, vol. 11(1), pages 31-41, January.
    4. Hoen, Anco & Koetse, Mark J., 2014. "A choice experiment on alternative fuel vehicle preferences of private car owners in the Netherlands," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 199-215.
    5. Kroesen, Maarten, 2015. "Do partners influence each other’s travel patterns? A new approach to study the role of social norms," Transportation Research Part A: Policy and Practice, Elsevier, vol. 78(C), pages 489-505.
    6. Kim, Jinhee & Rasouli, Soora & Timmermans, Harry, 2014. "Expanding scope of hybrid choice models allowing for mixture of social influences and latent attitudes: Application to intended purchase of electric cars," Transportation Research Part A: Policy and Practice, Elsevier, vol. 69(C), pages 71-85.
    7. Tanaka, Makoto & Ida, Takanori & Murakami, Kayo & Friedman, Lee, 2014. "Consumers’ willingness to pay for alternative fuel vehicles: A comparative discrete choice analysis between the US and Japan," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 194-209.
    8. Kley, Fabian & Lerch, Christian & Dallinger, David, 2011. "New business models for electric cars--A holistic approach," Energy Policy, Elsevier, vol. 39(6), pages 3392-3403, June.
    9. Kroesen, Maarten, 2014. "Modeling the behavioral determinants of travel behavior: An application of latent transition analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 65(C), pages 56-67.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nancy M. P. Bocken & Ilka Weissbrod & Maria Antikainen, 2021. "Business Model Experimentation for the Circular Economy: Definition and Approaches," Circular Economy and Sustainability,, Springer.
    2. Huang, Youlin & Qian, Lixian, 2021. "Consumer adoption of electric vehicles in alternative business models," Energy Policy, Elsevier, vol. 155(C).
    3. Hu, Xu & Yang, Zhaojun & Sun, Jun & Zhang, Yali, 2023. "Optimal pricing strategy for electric vehicle battery swapping: Pay-per-swap or subscription?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 171(C).
    4. Kong, Deyang & Xia, Quhong & Xue, Yixi & Zhao, Xin, 2020. "Effects of multi policies on electric vehicle diffusion under subsidy policy abolishment in China: A multi-actor perspective," Applied Energy, Elsevier, vol. 266(C).
    5. Fatemeh Nazari & Abolfazl Mohammadian & Thomas Stephens, 2023. "Exploring the Role of Perceived Range Anxiety in Adoption Behavior of Plug-in Electric Vehicles," Papers 2308.10313, arXiv.org.
    6. Guevara, C. Angelo & Figueroa, Esteban & Munizaga, Marcela A., 2021. "Paving the road for electric vehicles: Lessons from a randomized experiment in an introduction stage market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 153(C), pages 326-340.
    7. Li, Yina & Liang, Chenchen & Ye, Fei & Zhao, Xiande, 2023. "Designing government subsidy schemes to promote the electric vehicle industry: A system dynamics model perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 167(C).
    8. Liao, Fanchao & Molin, Eric & Timmermans, Harry & van Wee, Bert, 2019. "Consumer preferences for business models in electric vehicle adoption," Transport Policy, Elsevier, vol. 73(C), pages 12-24.
    9. Gabriela D. Oliveira & Luis C. Dias, 2019. "Influence of Demographics on Consumer Preferences for Alternative Fuel Vehicles: A Review of Choice Modelling Studies and a Study in Portugal," Energies, MDPI, vol. 12(2), pages 1-33, January.
    10. Jia, Wenjian & Chen, T. Donna, 2023. "Investigating heterogeneous preferences for plug-in electric vehicles: Policy implications from different choice models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 173(C).
    11. Rachana Vidhi & Prasanna Shrivastava & Abhishek Parikh, 2021. "Social and Technological Impact of Businesses Surrounding Electric Vehicles," Clean Technol., MDPI, vol. 3(1), pages 1-17, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ko, Sungmin & Shin, Jungwoo, 2023. "Projection of fuel cell electric vehicle demand reflecting the feedback effects between market conditions and market share affected by spatial factors," Energy Policy, Elsevier, vol. 173(C).
    2. Danielis, Romeo & Scorrano, Mariangela & Giansoldati, Marco & Rotaris, Lucia, 2019. "A meta-analysis of the importance of the driving range in consumers’ preference studies for battery electric vehicles," Working Papers 19_2, SIET Società Italiana di Economia dei Trasporti e della Logistica.
    3. Fanchao Liao & Eric Molin & Bert van Wee, 2017. "Consumer preferences for electric vehicles: a literature review," Transport Reviews, Taylor & Francis Journals, vol. 37(3), pages 252-275, May.
    4. Liao, Fanchao & Molin, Eric & Timmermans, Harry & van Wee, Bert, 2019. "Consumer preferences for business models in electric vehicle adoption," Transport Policy, Elsevier, vol. 73(C), pages 12-24.
    5. Loría, Luis Enrique & Watson, Verity & Kiso, Takahiko & Phimister, Euan, 2019. "Investigating users' preferences for Low Emission Buses: Experiences from Europe's largest hydrogen bus fleet," Journal of choice modelling, Elsevier, vol. 32(C), pages 1-1.
    6. Higgins, Christopher D. & Mohamed, Moataz & Ferguson, Mark R., 2017. "Size matters: How vehicle body type affects consumer preferences for electric vehicles," Transportation Research Part A: Policy and Practice, Elsevier, vol. 100(C), pages 182-201.
    7. Goldschmidt, Rüdiger & Richter, Andreas & Pfeil, Raphael, 2019. "Active stakeholder involvement and organisational tasks as factors for an effective communication and governance strategy in the promotion of e-taxis. Results from a field research lab," Energy Policy, Elsevier, vol. 135(C).
    8. Jia, Wenjian & Chen, T. Donna, 2023. "Investigating heterogeneous preferences for plug-in electric vehicles: Policy implications from different choice models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 173(C).
    9. Kwon, Yeongmin & Son, Sanghoon & Jang, Kitae, 2018. "Evaluation of incentive policies for electric vehicles: An experimental study on Jeju Island," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 404-412.
    10. Yahong Jiang & Qunqi Wu & Min Li & Yulei Gu & Jun Yang, 2023. "What Is Affecting the Popularity of New Energy Vehicles? A Systematic Review Based on the Public Perspective," Sustainability, MDPI, vol. 15(18), pages 1-29, September.
    11. Yang, J. & Chen, F., 2021. "How are social-psychological factors related to consumer preferences for plug-in electric vehicles? Case studies from two cities in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    12. Meilinda Fitriani Nur Maghfiroh & Andante Hadi Pandyaswargo & Hiroshi Onoda, 2021. "Current Readiness Status of Electric Vehicles in Indonesia: Multistakeholder Perceptions," Sustainability, MDPI, vol. 13(23), pages 1-25, November.
    13. Gabriela D. Oliveira & Luis C. Dias, 2019. "Influence of Demographics on Consumer Preferences for Alternative Fuel Vehicles: A Review of Choice Modelling Studies and a Study in Portugal," Energies, MDPI, vol. 12(2), pages 1-33, January.
    14. Tchetchik, Anat & Zvi, Liat I. & Kaplan, Sigal & Blass, Vered, 2020. "The joint effects of driving hedonism and trialability on the choice between internal combustion engine, hybrid, and electric vehicles," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    15. Huang, Youlin & Qian, Lixian & Soopramanien, Didier & Tyfield, David, 2021. "Buy, lease, or share? Consumer preferences for innovative business models in the market for electric vehicles," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    16. Huang, Youlin & Qian, Lixian, 2021. "Consumer adoption of electric vehicles in alternative business models," Energy Policy, Elsevier, vol. 155(C).
    17. Qian, Lixian & Grisolía, Jose M. & Soopramanien, Didier, 2019. "The impact of service and government-policy attributes on consumer preferences for electric vehicles in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 122(C), pages 70-84.
    18. Elena Higueras-Castillo & Sebastian Molinillo & J. Andres Coca-Stefaniak & Francisco Liébana-Cabanillas, 2020. "Potential Early Adopters of Hybrid and Electric Vehicles in Spain—Towards a Customer Profile," Sustainability, MDPI, vol. 12(11), pages 1-18, May.
    19. Iogansen, Xiatian & Wang, Kailai & Bunch, David & Matson, Grant & Circella, Giovanni, 2023. "Deciphering the factors associated with adoption of alternative fuel vehicles in California: An investigation of latent attitudes, socio-demographics, and neighborhood effects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 168(C).
    20. Wu, Geng & Inderbitzin, Alessandro & Bening, Catharina, 2015. "Total cost of ownership of electric vehicles compared to conventional vehicles: A probabilistic analysis and projection across market segments," Energy Policy, Elsevier, vol. 80(C), pages 196-214.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:116:y:2018:i:c:p:531-546. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.