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Impact of Service Station Networks on Purchase Decisions of Alternative-fuel Vehicles

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  • Achtnicht, Martin
  • Bühler, Georg
  • Hermeling, Claudia

Abstract

In this paper we analyze the impact of service station availability on the demand for alternative-fuel vehicles and the consumers' willingness to pay for an enlarged fueling infrastructure. We examine a stated preferences choice experiment conducted as a CAPI survey with about 600 interviews of potential car buyers in Germany and estimate the coefficients of a discrete choice model. We simulate different scenarios and analyze how individual choice probabilities for alternative fuel-types are changing with a modified fueling infrastructure. In our scenarios hybrids, LPG/CNG and hydrogen will be real alternatives to the existing conventional technologies. However, biofuels and electric power trains are well behind even in a situation where their infrastructure is equally developed. Moreover, on the basis of our model we compute what increases in fixed or variable costs consumers of different income groups are willing to accept for an increasing station density. --

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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 08-088.

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Date of creation: 2008
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Handle: RePEc:zbw:zewdip:7430

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Keywords: Fueling Infrastructure; Alternative Fuels; Automobile Market; Stated Preferences; Discrete Choice; Network Effects;

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References

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  1. Brownston, David & Bunch, David S. & Train, Kenneth, 1999. "Joint mixed logit models of stated and revealed preferences for alternative-fuel vehicles," University of California Transportation Center, Working Papers qt7rf7s3nx, University of California Transportation Center.
  2. Brownstone, David & Bunch, David S. & Golob, Thomas F. & Ren, Weiping, 1996. "A Transaction Choice Model for Forecasting Demand for Alternative-Fuel Vehicles," University of California Transportation Center, Working Papers qt0244r8g2, University of California Transportation Center.
  3. Moore, William L & Holbrook, Morris B, 1990. " Conjoint Analysis on Objects with Environmentally Correlated Attributes: The Questionable Importance of Representative Design," Journal of Consumer Research, University of Chicago Press, University of Chicago Press, vol. 16(4), pages 490-97, March.
  4. McCarthy, Patrick S, 1996. "Market Price and Income Elasticities of New Vehicles Demand," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 543-47, August.
  5. Horne, Matt & Jaccard, Mark & Tiedemann, Ken, 2005. "Improving behavioral realism in hybrid energy-economy models using discrete choice studies of personal transportation decisions," Energy Economics, Elsevier, Elsevier, vol. 27(1), pages 59-77, January.
  6. Brownstone, David & Bunch, David S & Golob, Thomas F & Ren, Weiping, 1996. "A Transactions Choice Model for Forecasting Demand for Alternative-Fuel Vehicles," University of California Transportation Center, Working Papers qt3sm7w9zk, University of California Transportation Center.
  7. Greene, William H. & Hensher, David A., 2003. "A latent class model for discrete choice analysis: contrasts with mixed logit," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 37(8), pages 681-698, September.
  8. Mau, Paulus & Eyzaguirre, Jimena & Jaccard, Mark & Collins-Dodd, Colleen & Tiedemann, Kenneth, 2008. "The 'neighbor effect': Simulating dynamics in consumer preferences for new vehicle technologies," Ecological Economics, Elsevier, Elsevier, vol. 68(1-2), pages 504-516, December.
  9. Hensher, David A., 2010. "Hypothetical bias, choice experiments and willingness to pay," Transportation Research Part B: Methodological, Elsevier, Elsevier, vol. 44(6), pages 735-752, July.
  10. Achtnicht, Martin, 2012. "German car buyers' willingness to pay to reduce CO2 emissions," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 09-058 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  11. Axsen, Jonn & Mountain, Dean C. & Jaccard, Mark, 2009. "Combining stated and revealed choice research to simulate the neighbor effect: The case of hybrid-electric vehicles," Resource and Energy Economics, Elsevier, Elsevier, vol. 31(3), pages 221-238, August.
  12. David Hensher & Matthew Beck & John Rose, 2011. "Accounting for Preference and Scale Heterogeneity in Establishing Whether it Matters Who is Interviewed to Reveal Household Automobile Purchase Preferences," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 49(1), pages 1-22, May.
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Citations

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Cited by:
  1. Ernst, Christian-Simon & Hackbarth, André & Madlener, Reinhard & Lunz, Benedikt & Uwe Sauer, Dirk & Eckstein, Lutz, 2011. "Battery sizing for serial plug-in hybrid electric vehicles: A model-based economic analysis for Germany," Energy Policy, Elsevier, Elsevier, vol. 39(10), pages 5871-5882, October.
  2. Jérôme Massiani, 2013. "SP surveys for electric and alternative fuel vehicles: are we doing the right thing?," Working Papers 2013_01, Department of Economics, University of Venice "Ca' Foscari".
  3. repec:dgr:uvatin:2011133 is not listed on IDEAS
  4. Aileen Lam, 2013. "Projections of future emissions and energy use from passenger cars as a result of policies in the EU with a dynamic model of technological change," 4CMR Working Paper Series, University of Cambridge, Department of Land Economy, Cambridge Centre for Climate Change Mitigation Research 005, University of Cambridge, Department of Land Economy, Cambridge Centre for Climate Change Mitigation Research.
  5. Engerer, Hella & Horn, Manfred, 2010. "Natural gas vehicles: An option for Europe," Energy Policy, Elsevier, Elsevier, vol. 38(2), pages 1017-1029, February.
  6. Alexandros Dimitropoulos & Piet Rietveld & Jos N. van Ommeren, 2011. "Consumer Valuation of Driving Range: A Meta-Analysis," Tinbergen Institute Discussion Papers 11-133/3, Tinbergen Institute.
  7. Jérôme Massiani, 2013. "The use of Stated Preferences to forecast alternative fuel vehicles market diffusion: Comparisons with other methods and proposal for a Synthetic Utility Function," Working Papers 2013:12, Department of Economics, University of Venice "Ca' Foscari".

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