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Study on crowdfunding’s promoting effect on the expansion of electric vehicle charging piles based on game theory analysis

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  • Zhu, Lijing
  • Zhang, Qi
  • Lu, Huihui
  • Li, Hailong
  • Li, Yan
  • McLellan, Benjamin
  • Pan, Xunzhang

Abstract

The successful market penetration of electric vehicles (EVs) is subject to the capacity of charging infrastructure, and the development of charging infrastructure is mainly driven by economic incentives. This study analyzes the advantages of crowdfunding financing for promoting the construction of electric vehicle charging piles compared with other incentive methods. A three-level Stackelberg game is proposed to model the interactions between the electricity supplier, the charging infrastructure operator and crowdfunders. The results indicate that crowdfunding is an effective and efficient way to promote the penetration of charging piles, since it has the same effect as supplying a 20% subsidy with regards to the promotion of charging pile installation. Theoretical analysis finds that crowdfunding’s performance is affected by crowdfunders’ risk attitude, and less risk-averse crowdfunders have stronger incentives for charging piles investment. Sensitivity analysis is conducted on crowdfunding’s performance in terms of repayment rate, unit construction cost, charging volume and risk tolerance. The results show that the effect of crowdfunding is most sensitive to construction cost, and when unit construction cost decreases from 0.03 to 0.01USD/(watt·year), the total annual construction quantity under crowdfunding model increases from 18.8MW to 56.6MW, which provides managerial insights for the government to promote charging infrastructure related technologies.

Suggested Citation

  • Zhu, Lijing & Zhang, Qi & Lu, Huihui & Li, Hailong & Li, Yan & McLellan, Benjamin & Pan, Xunzhang, 2017. "Study on crowdfunding’s promoting effect on the expansion of electric vehicle charging piles based on game theory analysis," Applied Energy, Elsevier, vol. 196(C), pages 238-248.
    • Handle: RePEc:eee:appene:v:196:y:2017:i:c:p:238-248
    DOI: 10.1016/j.apenergy.2016.11.060
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    13. Zhang, Yaoli & Liu, Xingyu & Wei, Wenshen & Peng, Tianji & Hong, Gang & Meng, Chao, 2020. "Mobile charging: A novel charging system for electric vehicles in urban areas," Applied Energy, Elsevier, vol. 278(C).
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    15. Nie, Qingyun & Zhang, Lihui & Tong, Zihao & Hubacek, Klaus, 2022. "Strategies for applying carbon trading to the new energy vehicle market in China: An improved evolutionary game analysis for the bus industry," Energy, Elsevier, vol. 259(C).
    16. Konstantakopoulos, Ioannis C. & Barkan, Andrew R. & He, Shiying & Veeravalli, Tanya & Liu, Huihan & Spanos, Costas, 2019. "A deep learning and gamification approach to improving human-building interaction and energy efficiency in smart infrastructure," Applied Energy, Elsevier, vol. 237(C), pages 810-821.
    17. Luo, Qi & Yin, Yunlei & Chen, Pengyu & Zhan, Zhenfei & Saigal, Romesh, 2022. "Dynamic subsidies for synergistic development of charging infrastructure and electric vehicle adoption," Transport Policy, Elsevier, vol. 129(C), pages 117-136.

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