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Optimizing Electric Vehicle Integration with Vehicle-to-Grid Technology: The Influence of Price Difference and Battery Costs on Adoption, Profits, and Green Energy Utilization

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  • Jiashun Li

    (School of Economics and Management, Chongqing Jiaotong University, Chongqing 400074, China)

  • Aixing Li

    (School of Information Science and Engineering, Chongqing Jiaotong University, Chongqing 400074, China)

Abstract

Over the past decade, the widespread adoption of global green energy has emerged as a predominant trend. However, renewable energy sources, such as wind and solar power, face significant wastage due to challenges in energy storage. Electric vehicles (EVs) are considered an effective solution to address the energy storage dilemma. “Vehicle-to-grid” (V2G) technology, allowing vehicles to feed electricity into the grid, enhances the efficiency of renewable energy utilization. This paper proposes an electric vehicle game model that comprehensively considers user choices, corporate profits, and green energy utilization. The model, based on difference in prices, electricity rates, and fuel prices, establishes user utility models to determine optimal driving distances and driving decisions. It separately formulates the maximum profit functions for selling conventional electric cars and V2G electric cars, deriving optimal pricing for enterprises and user adoption rates. The research findings indicate that when price difference can offset V2G battery costs, increasing price difference and reducing battery costs effectively enhance electric vehicle adoption rates, increase corporate profits, and improve green energy utilization. Moreover, compared to conventional electric vehicles, V2G electric vehicles demonstrate a comparative advantage, with the implementation of V2G expanding corporate profits and green energy utilization. Validation using Chinese data reveals that when price difference can offset V2G battery costs, drivers are more inclined to choose V2G electric vehicles. Both battery electric vehicles (BEVs) and V2G electric vehicles exhibit adoption rates that can increase by over 35%. This study provides theoretical and model support for the future development of V2G and policy formulation, underscoring the comparative advantages of V2G in enhancing green energy utilization efficiency. Additionally, this study offers valuable insights as a reference for business models in the V2G electric vehicle industry.

Suggested Citation

  • Jiashun Li & Aixing Li, 2024. "Optimizing Electric Vehicle Integration with Vehicle-to-Grid Technology: The Influence of Price Difference and Battery Costs on Adoption, Profits, and Green Energy Utilization," Sustainability, MDPI, vol. 16(3), pages 1-19, January.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:3:p:1118-:d:1328397
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    References listed on IDEAS

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