IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v204y2023ipbs0921800922003469.html
   My bibliography  Save this article

A general equilibrium analysis of individual choice behavior on alternative fuel vehicles

Author

Listed:
  • Lee, Jeongeun
  • Koo, Yoonmo

Abstract

This study empirically analyzed the effect of the distribution of alternative fuel vehicles (AFVs) that are expected to reduce CO2 emissions and improve the national economy. The effect of individual vehicle choices, determined using a discrete choice (DC) model, on the overall economy was quantified using a computable general equilibrium (CGE) model. After integrating the two models, the DC model captured more elastic changes in the price-attribute levels by endogenously reflecting the results of the CGE model. Furthermore, the CGE model reflected the technical specification in the DC model to identify the effect of AFVs proliferation in detail. The results show that replacing ICEVs with AFVs decreased CO2 emissions in the transportation sector, but emissions from other increased production in other industries offset this reduction. AFVs are set to be mainstream in the market by 2050 and, with improved technological performance and infrastructure, fuel economic growth. Expecting that increased AFV demand will reduce CO2 emissions without the support of renewable energy generation and electrolysis of hydrogen production may be too optimistic.

Suggested Citation

  • Lee, Jeongeun & Koo, Yoonmo, 2023. "A general equilibrium analysis of individual choice behavior on alternative fuel vehicles," Ecological Economics, Elsevier, vol. 204(PB).
    • Handle: RePEc:eee:ecolec:v:204:y:2023:i:pb:s0921800922003469
    DOI: 10.1016/j.ecolecon.2022.107685
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800922003469
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ecolecon.2022.107685?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Leurent, Fabien & Windisch, Elisabeth, 2015. "Benefits and costs of electric vehicles for the public finances: An integrated valuation model based on input–output analysis, with application to France," Research in Transportation Economics, Elsevier, vol. 50(C), pages 51-62.
    2. Dugan, Anna & Mayer, Jakob & Thaller, Annina & Bachner, Gabriel & Steininger, Karl W., 2022. "Developing policy packages for low-carbon passenger transport: A mixed methods analysis of trade-offs and synergies," Ecological Economics, Elsevier, vol. 193(C).
    3. Hofmann, Jana & Guan, Dabo & Chalvatzis, Konstantinos & Huo, Hong, 2016. "Assessment of electrical vehicles as a successful driver for reducing CO2 emissions in China," Applied Energy, Elsevier, vol. 184(C), pages 995-1003.
    4. Jaccard, Mark & Murphy, Rose & Rivers, Nic, 2004. "Energy-environment policy modeling of endogenous technological change with personal vehicles: combining top-down and bottom-up methods," Ecological Economics, Elsevier, vol. 51(1-2), pages 31-46, November.
    5. Armenio, Sabrina & Bergantino, Angela Stefania & Intini, Mario & Morone, Andrea, 2022. "Cheaper or eco-friendly cars: What do consumers prefer? An experimental study on individual and social preferences," Ecological Economics, Elsevier, vol. 193(C).
    6. Fox, Jacob & Axsen, Jonn & Jaccard, Mark, 2017. "Picking Winners: Modelling the Costs of Technology-specific Climate Policy in the U.S. Passenger Vehicle Sector," Ecological Economics, Elsevier, vol. 137(C), pages 133-147.
    7. Troy R. Hawkins & Bhawna Singh & Guillaume Majeau‐Bettez & Anders Hammer Strømman, 2013. "Comparative Environmental Life Cycle Assessment of Conventional and Electric Vehicles," Journal of Industrial Ecology, Yale University, vol. 17(1), pages 53-64, February.
    8. Kim, Imjung & Kim, Junghun & Lee, Jongsu, 2020. "Dynamic analysis of well-to-wheel electric and hydrogen vehicles greenhouse gas emissions: Focusing on consumer preferences and power mix changes in South Korea," Applied Energy, Elsevier, vol. 260(C).
    9. Choi, Hyunhong & Shin, Jungwoo & Woo, JongRoul, 2018. "Effect of electricity generation mix on battery electric vehicle adoption and its environmental impact," Energy Policy, Elsevier, vol. 121(C), pages 13-24.
    10. Byun, Hyunsuk & Shin, Jungwoo & Lee, Chul-Yong, 2018. "Using a discrete choice experiment to predict the penetration possibility of environmentally friendly vehicles," Energy, Elsevier, vol. 144(C), pages 312-321.
    11. Shin, Jungwoo & Hwang, Won-Sik & Choi, Hyundo, 2019. "Can hydrogen fuel vehicles be a sustainable alternative on vehicle market?: Comparison of electric and hydrogen fuel cell vehicles," Technological Forecasting and Social Change, Elsevier, vol. 143(C), pages 239-248.
    12. Li, Wei & Jia, Zhijie & Zhang, Hongzhi, 2017. "The impact of electric vehicles and CCS in the context of emission trading scheme in China: A CGE-based analysis," Energy, Elsevier, vol. 119(C), pages 800-816.
    13. Lieven, Theo, 2015. "Policy measures to promote electric mobility – A global perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 82(C), pages 78-93.
    14. Truong, Truong P. & Hensher, David A., 2012. "Linking discrete choice to continuous demand within the framework of a computable general equilibrium model," Transportation Research Part B: Methodological, Elsevier, vol. 46(9), pages 1177-1201.
    15. Karplus, Valerie J. & Paltsev, Sergey & Babiker, Mustafa & Reilly, John M., 2013. "Applying engineering and fleet detail to represent passenger vehicle transport in a computable general equilibrium model," Economic Modelling, Elsevier, vol. 30(C), pages 295-305.
    16. Anas, Alex & De Sarkar, Sayan & Timilsina, Govinda R., 2021. "Bus Rapid Transit versus road expansion to alleviate congestion: A general equilibrium comparison," Economics of Transportation, Elsevier, vol. 26.
    17. Oryani, Bahareh & Koo, Yoonmo & Shafiee, Afsaneh & Rezania, Shahabaldin & Jung, Jiyeon & Choi, Hyunhong & Khan, Muhammad Kamran, 2022. "Heterogeneous preferences for EVs: Evidence from Iran," Renewable Energy, Elsevier, vol. 181(C), pages 675-691.
    18. Moon, HyungBin & Park, Stephen Youngjun & Woo, JongRoul, 2021. "Staying on convention or leapfrogging to eco-innovation?: Identifying early adopters of hydrogen-powered vehicles," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    19. Axsen, Jonn & Bailey, Joseph & Castro, Marisol Andrea, 2015. "Preference and lifestyle heterogeneity among potential plug-in electric vehicle buyers," Energy Economics, Elsevier, vol. 50(C), pages 190-201.
    20. Manjunath, Archana & Gross, George, 2017. "Towards a meaningful metric for the quantification of GHG emissions of electric vehicles (EVs)," Energy Policy, Elsevier, vol. 102(C), pages 423-429.
    21. Sierzchula, William & Bakker, Sjoerd & Maat, Kees & van Wee, Bert, 2014. "The influence of financial incentives and other socio-economic factors on electric vehicle adoption," Energy Policy, Elsevier, vol. 68(C), pages 183-194.
    22. Hardman, Scott & Chandan, Amrit & Tal, Gil & Turrentine, Tom, 2017. "The effectiveness of financial purchase incentives for battery electric vehicles – A review of the evidence," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 1100-1111.
    23. Lee, Duk Hee & Park, Sang Yong & Hong, Jong Chul & Choi, Sang Jin & Kim, Jong Wook, 2013. "Analysis of the energy and environmental effects of green car deployment by an integrating energy system model with a forecasting model," Applied Energy, Elsevier, vol. 103(C), pages 306-316.
    24. Mahmoud, Moataz & Garnett, Ryan & Ferguson, Mark & Kanaroglou, Pavlos, 2016. "Electric buses: A review of alternative powertrains," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 673-684.
    25. Kumar, Rajeev Ranjan & Chakraborty, Abhishek & Mandal, Prasenjit, 2021. "Promoting electric vehicle adoption: Who should invest in charging infrastructure?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    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. Wei, Taoyuan, 2024. "Multiplier effect on reducing carbon emissions of joint demand and supply side measures in the hydrogen market," Energy, Elsevier, vol. 305(C).
    2. Lee, Wonjong & Koo, Yoonmo & Kim, Yong-gun, 2024. "Environmental time-of-use scheme: Strategic leveraging of financial and environmental incentives for greener electric vehicle charging," Energy, Elsevier, vol. 309(C).
    3. Gao, Zhiyuan & Zhao, Ying & Li, Lianqing & Hao, Yu, 2024. "Economic effects of sustainable energy technology progress under carbon reduction targets: An analysis based on a dynamic multi-regional CGE model," Applied Energy, Elsevier, vol. 363(C).

    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. Moon, Sungho & Kim, Kyungah & Seung, Hyunchan & Kim, Junghun, 2022. "Strategic analysis on effects of technologies, government policies, and consumer perceptions on diffusion of hydrogen fuel cell vehicles," Energy Economics, Elsevier, vol. 115(C).
    3. Singh, Priyanshu & Namrata,, 2025. "The synergy between electric vehicle and electricity generation mix: A path to sustainable transportation," Energy Policy, Elsevier, vol. 200(C).
    4. Park, Soyeong & Maeng, Kyuho & Shin, Jungwoo, 2023. "Efficient subsidy distribution for hydrogen fuel cell vehicles based on demand segmentation," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    5. Kim, Imjung & Kim, Junghun & Lee, Jongsu, 2020. "Dynamic analysis of well-to-wheel electric and hydrogen vehicles greenhouse gas emissions: Focusing on consumer preferences and power mix changes in South Korea," Applied Energy, Elsevier, vol. 260(C).
    6. Kim, Kyungah & Lee, Jongsu & Kim, Junghun, 2021. "Can liquefied petroleum gas vehicles join the fleet of alternative fuel vehicles? Implications of transportation policy based on market forecast and environmental impact," Energy Policy, Elsevier, vol. 154(C).
    7. 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.
    8. Khatua, Apalak & Ranjan Kumar, Rajeev & Kumar De, Supriya, 2023. "Institutional enablers of electric vehicle market: Evidence from 30 countries," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).
    9. Moon, HyungBin & Park, Stephen Youngjun & Woo, JongRoul, 2021. "Staying on convention or leapfrogging to eco-innovation?: Identifying early adopters of hydrogen-powered vehicles," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    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. Münzel, Christiane & Plötz, Patrick & Sprei, Frances & Gnann, Till, 2019. "How large is the effect of financial incentives on electric vehicle sales? – A global review and European analysis," Energy Economics, Elsevier, vol. 84(C).
    12. Nenming Wang & Guwen Tang, 2022. "A Review on Environmental Efficiency Evaluation of New Energy Vehicles Using Life Cycle Analysis," Sustainability, MDPI, vol. 14(6), pages 1-35, March.
    13. Sheykhfard, Abbas & Azmoodeh, Mohammad & Das, Subasish & Kutela, Boniphace, 2025. "Analyzing purchase intentions of used electric vehicles through consumer experiences: A structural equation modeling approach," Transport Policy, Elsevier, vol. 160(C), pages 125-137.
    14. Kim, Junghun & Seung, Hyunchan & Lee, Jongsu & Ahn, Joongha, 2020. "Asymmetric preference and loss aversion for electric vehicles: The reference-dependent choice model capturing different preference directions," Energy Economics, Elsevier, vol. 86(C).
    15. Jia, Wenjian & Jiang, Zhiqiu & Wang, Qian & Xu, Bin & Xiao, Mei, 2023. "Preferences for zero-emission vehicle attributes: Comparing early adopters with mainstream consumers in California," Transport Policy, Elsevier, vol. 135(C), pages 21-32.
    16. František Pollák & Josef Vodák & Jakub Soviar & Peter Markovič & Gianluca Lentini & Valerio Mazzeschi & Alessandro Luè, 2021. "Promotion of Electric Mobility in the European Union—Overview of Project PROMETEUS from the Perspective of Cohesion through Synergistic Cooperation on the Example of the Catching-Up Region," Sustainability, MDPI, vol. 13(3), pages 1-26, February.
    17. Peng, Ruoqing & Tang, Justin Hayse Chiwing G. & Yang, Xiong & Meng, Meng & Zhang, Jie & Zhuge, Chengxiang, 2024. "Investigating the factors influencing the electric vehicle market share: A comparative study of the European Union and United States," Applied Energy, Elsevier, vol. 355(C).
    18. Hernández-Tamurejo, Álvaro & Saiz-Sepúlveda, Álvaro & Lacárcel, Francisco Javier S., 2024. "Are urban mobility policies favoring the purchase of new vehicles?," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    19. Zhou, Xi-Yin & Xu, Zhicheng & Zheng, Jialin & Zhou, Ya & Lei, Kun & Fu, Jiafeng & Khu, Soon-Thiam & Yang, Junfeng, 2023. "Internal spillover effect of carbon emission between transportation sectors and electricity generation sectors," Renewable Energy, Elsevier, vol. 208(C), pages 356-366.
    20. Ye, Tuo & Zhao, Songyu & Lau, Chi Keung Marco & Chau, Frankie, 2024. "Social media sentiment of hydrogen fuel cell vehicles in China: Evidence from artificial intelligence algorithms," Energy Economics, Elsevier, vol. 133(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    Statistics

    Access and download statistics

    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:ecolec:v:204:y:2023:i:pb:s0921800922003469. 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/locate/ecolecon .

    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.